How much does UPS charge for COD?

$22.50 per package since 22 December 2025, for amounts up to $50,000. UPS won't accept cash, and remits through C.O.D. Direct generally within 12 business days.

Does FedEx still offer cash on delivery?

Not in the US: FedEx retired COD for Ground and Express within and to the US on 31 July 2023, and FedEx Freight stopped it from 6 January 2025.

What happens if the carrier fails to collect the COD?

Under UPS's terms, the shipper must notify UPS within 45 days of shipment or the claim is waived, and cannot declare a value for failure to collect. Cheques are accepted at the shipper's risk.

Term

Cash on delivery (COD)

Cash on delivery (COD) means the carrier collects payment from the consignee before handing over the goods, then sends the money to the shipper. UPS charges $22.50 per package in 2026, accepts amounts up to $50,000 and remits electronically within about 12 business days; FedEx has withdrawn COD in the US.

Also called COD, collect on delivery, C.O.D., COD shipment, COD feeUpdated 14 October 2026

UPS's rules

Fee: $22.50 per package from 22 December 2025, up from $21.00.
Limit: up to $50,000 per package, and UPS will not accept currency.
Attempts: if payment can't be collected within three delivery attempts, the package goes back to the shipper.
Remittance: with C.O.D. Direct, generally within 12 business days of delivery, by electronic transfer.
Cheques: accepted on the shipper's behalf, with the shipper assuming all the risk of non-payment or forgery.

Who has stopped

FedEx retired COD for FedEx Ground and FedEx Express within and to the US on 31 July 2023, and FedEx Freight stopped offering it from 6 January 2025; its tariff now says the carrier will not be liable for collecting a COD amount, because it is not a service it provides.

India Post

India Post's 2024 regulations charge 1.6% of the amount recovered up to ₹6,500, and ₹100 plus 1% of the amount over ₹6,500 above that, with the money remitted to the sender as administrative instructions specify. The RBI's 2020 payment aggregator guidelines did not apply to the cash-on-delivery e-commerce model.

Worked example: two COD shipments

UPS: a $1,200 order sent COD → $22.50 fee · money back about 12 business days after delivery · India Post: ₹5,000 COD → 1.6% = ₹80 · ₹10,000 COD → ₹100 + 1% × ₹3,500 = ₹135

Fees from UPS's daily rates (September 2026) and the Post Office Regulations, 2024; the orders are illustrative.

The mistake people make

Treating the COD amount as the goods' declared value. UPS's terms say entering a COD amount is not a declaration of value for carriage, and shippers may not declare a value for failure to collect it — insure the goods separately. A shipper that hasn't been paid must tell UPS within 45 days of shipment, or the claim is deemed waived.

FAQ