COD transaction

COD transaction

Delivery versus Payment

A settlement procedure in which the buyer and the seller of a security agree that the seller will pay the buyer upon the security's delivery to the seller. This agreement is designed to reduce risk to both parties: if the delivery and payment do not occur at the same time there is a risk, however small, of theft by one party or the other. It is more commonly known as cash on delivery.
References in periodicals archive ?
When a COD transaction causes a reduction in the members share of debt, the member's outside basis is reduced accordingly, but that reduction is usually offset by the outside basis increase from the member's allocable share of the related COD income.
In other words, when the property has recourse financing, the transaction is bifurcated into two transactions, a sale transaction and a COD transaction.
PAYO developed a platform that will allow for both the merchants and their consumers to experience better and faster COD transactions.
It has been established that indirect cost of COD services are much higher than direct costs due to large share of COD transactions (as high as 60 percent by some estimates).
COD transactions usually involve cash paid to the carrier upon delivery COD can also mean payment at the border.