COD vs Prepaid Orders: What Merchants Should Know

Compares the trade-offs between Cash on Delivery and prepaid payment options to help store owners optimize checkout settings.

Before You Begin

• Review your current payment gateway and shipping courier fee schedules.
• Analyze your store return-to-origin rates across both order types.

Step-by-Step Instructions

Step 1: Open COD Configuration

Navigate to Store -> Settings -> Payment and click Configure COD.

Step 2: Configure COD Fee

In the COD Charges field, specify the extra fee charged for cash handling (e.g. ₹50).

Step 3: Set Partial Advance Payment

Toggle Enable Partial Advance if you require customers to pay a small token deposit online before COD dispatch.

Step 4: Define Order Value Limits

Enter Minimum Order Value and Maximum Order Value to restrict COD to safe order amounts.

Step 5: Save Settings

Click Save Settings in the top header.

What You Should See

• The configured Cash on Delivery payment settings and advance deposit rules are active at checkout.

Common Problems & Troubleshooting

Problem: High Refusal Rate on COD Orders

Solution: Consider introducing prepaid incentives or requiring phone confirmation before dispatching cash orders.

Related Help Articles

• How to Encourage Customers to Pay Online

Complete Settings Reference

The table below details every configuration field, option, and toggle for this feature, explaining what each setting controls with practical merchant examples.

Setting / Option Name	What It Does (Platform Function)	Merchant Example / Use Case
COD Charges (Handling Fee)	Adds a specific non-refundable handling fee to the customer cart when Cash on Delivery is selected.	Charge ₹49 or ₹79 for COD orders. This offsets courier cash handling charges and encourages shoppers to pay online.
Enable Partial Advance	Requires the buyer to pay a small portion of the order total upfront online before the order is dispatched COD.	Example: A merchant may require a ₹100 advance on a ₹1,500 order before processing a COD delivery.
Advance Type (Fixed vs Percentage)	Allows merchants to set partial advance as a flat amount (e.g. ₹100) or a percentage (e.g. 10%).	Use Fixed (₹100) for standard orders, or Percentage (20%) for high-ticket customized products.
Min / Max Order Value	Restricts COD availability to orders within a safe subtotal window.	Example: Set a minimum order value of ₹299 and a maximum order value of ₹5,000 if you only want COD available within that order subtotal range.
Pincode Exclusions	Blacklists specific delivery postal codes where couriers report high fraud or delivery failure rates.	Input known high-RTO pincodes to disable COD in those areas while still allowing prepaid orders.