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Exploring the Power of Collect on Delivery (COD) USPS Service 

By: Marija Vujosevic, IB Sales Representative and Harry Whitehouse, IB Chief Innovation Officer  

In today’s fast-paced world of online shopping and subscription-based services, convenience and flexibility in payment options are crucial. That’s where the power of Collect on Delivery (COD) USPS service comes into play. Imagine a hassle-free way to solicit payment from package recipients during the delivery process itself, eliminating the need for credit cards or online payment channels. Whether you’re a merchant seeking an alternative payment method or a customer looking for more flexibility, COD offers a reliable solution.  

In this blog, we’ll dive deep into the world of COD, exploring its benefits, features, and how it can revolutionize your subscription deliveries. Join us as we unlock the potential of COD and discover how it can streamline your business operations while enhancing the customer experience. And the best part? International Bridge (IB) is here to guide you every step of the way, providing seamless integration and support for implementing COD into your business model. From API instructions to personalized assistance, our dedicated support team at IB is ready to help you harness the full potential of COD and make your shipping process a breeze. 

What is Collect on Delivery? 

Collect on Delivery (COD) is a service that solicits payment from a package recipient as part of the Postal delivery process.  The payment amount is essentially the “sales price” of the merchandize in the package. Merchants can think of COD as an alternative to order payment by credit card, PayPal or other payment channels.  COD is often preferred for recurrent subscription deliveries.  

Two Alternatives: Delivery at Home or Pickup at Nearby Post Office

Our software produces an “old-school” 3816 COD form which is used when the merchant desires that the funds be collected at the recipient’s door.  The form is used in combination with a conventional postage payment label – so there will be two labels on each package.  The tracking number on the postage label will be the same as the one used on the COD form shown below.   

We also offer a new single-label version which combines the postage payment label with the COD form as shown below.  In this case, only a single label is needed on the package. 

The new label doesn’t ship directly to your customer, but rather to the Post Office nearest the customer’s address. This ensures that you either get your money for the it or the package is returned to you. Recipients may pay by cash, pin-based debit card, a personal check or money order made payable to the USPS.

The merchant pays postage plus COD fees at time of mailing. 

The fees for COD include insurance against loss, rifling, damage to the article or USPS’s failure to obtain payment if the package was in fact delivered. 

The amount collected may not exceed $1,000 per package. 

When a COD mailpiece cannot be delivered to the recipient or an agent, the item will be held at the local Post Office for up to 10 days unless the mailer specifies fewer days on the item. 

Merchant Payment via EFT

USPS has a relatively new way of getting funds back to the merchant — EFT (Electronic Funds Transfer).   This is an alternative to the classic method where the carrier converted each payment into a Postal Money Order then mailed that to the merchant.  The merchant must continue to process each received payment one at a time, apply it to the proper order, and finally deposit the money order into their bank.  In contrast, EFT places the funds directly into the merchant’s bank, is less work for the carrier, and speeds up the entire process. 

To set up EFT, you will first obtain a unique mailer ID (MID) from USPS and fill out a 3881X form. The International Bridge support team will help you with these steps. The 3881x form essentially links the unique mailer ID (used as part of the tracking number) to the merchant’s bank account.  As packages are delivered and funds are collected, the payments are consolidated and then transferred directly to the merchant’s bank account.  A detailed reconciliation report is provided for each deposit.

Ready to streamline your payment process and enhance the customer experience with Collect on Delivery (COD)? Take the next step towards revolutionizing your subscription deliveries and unlocking the full potential of COD. Contact our dedicated support team at International Bridge today to learn more about how our seamless integration and personalized assistance can help you implement COD into your business model. Whether you need API instructions, guidance on customization, or expert advice, we’re here to support you every step of the way. Don’t miss out on the opportunity to offer a convenient and flexible payment option that sets you apart from the competition. Email us at now and let us help you transform your shipping process into a seamless and successful endeavor.