How to Configure Cash On Delivery Payment Method in Magento 2?

How to Configure Cash On Delivery Payment Method in Magento 2?

Magento is a robust eCommerce platform that is widely known for its customisability, innovative features, and scalability. Speaking of features, Magento offers various payment methods, including the cash on delivery (COD). In this article, we’ll discuss about the COD payment method, its benefits, and how to configure it in Magento 2.

Let’s get started.

What is the COD Payment Method?

Suppose you ordered a pair of sneakers from an online store. Instead of paying upfront using a bank card or any other payment platform, you opt for COD. In this case, you’ll pay the store only when the product is delivered to your location. In other words, no payment exchanges hands unless the product is delivered.

The customer pays the money to the shipping carrier at the time of receiving the goods. The shipping carrier then transfers the money to the seller after deducting their service/handling fee. This payment method is often preferred by those who are not comfortable with online payments.

Magento 2 allows you accept and configure Cash on Delivery payment method for your store. You can configure COD for specific countries & also the minimum and maximum order total. Before we list the steps to configure the COD payment method in Magento 2, let’s understand the pros and cons associated with it.

Benefits of Magento 2 COD Payment Method


This payment method is highly convenient for customers in regions where online payments are not widely used or there’s risk of fraud.

Target More Customers

Another notable benefit is that it allows the store to target customers who are not a part of the formal payment channels or do not prefer to use digital payments.

Less Risky

There’s less risk of fraudulent transactions since the payment is only made once the goods are delivered.

Enhances Trust for New Stores

Suppose you opened your Magento 2 store only recently. The target audience would be sceptical of buying from a newly established store. By offering the COD payment method, you can enhance user trust. Based on our experience, offering COD is a great way to enhance Magento 2 sales.

No Delays in Receiving Payments

Usually, banks and other online payment channels hold the payment for a while before transferring it to the merchant. This is a significant issue for a business’s cash flow. In the case of COD, the payment is collected as soon as the product is delivered. In other words, there’s no delay whatsoever.

No Fees

Another notable benefit is that that the merchant does not have to pay any fee to the payment providers. This maximises profitability.

Drawbacks of the COD Payment Method

High Risk of Returns

Change of mind is one of the biggest reasons behind order returns. When the payment is made online, store owners can deduct a certain amount before processing the refund. In case of COD, there’s no way to deduct any amount in case the customer refuses to accept the delivery.

Security Concerns

Another issue is that handling large amounts of cash is not without security concerns. What if the delivery person is mugged after delivery COD orders? In that case, the store will lose the items and the cash. This double loss can send any business to the ground. Secondly, courts may hold the business owner liable for any injuries to the delivery person.

Administrative Issues

Lastly, handling cash can be quite tiresome. In online payments, everything is mostly automated. Therefore, report generation and account reconciliation is not a concern. While handling cash, everything must be done manually. It can detract you and your employees from tasks that matter the most.

How to Configure COD

  • In Magento 2 admin area, navigate to Stores -> Settings -> Configuration.
  • Under Sales, select Payment Methods.

Configure Title & Order Status

You will see all the available payment methods. Expand the Cash On Delivery Payment tab to see the following options.

  • Enabled: Set it to ‘Yes’ to active Cash On Delivery Payment method.
  • Title: This is what your customers see as the name for this payment method during checkout.
  • New Order Status: Set it to Pending until receipt of payment is confirmed.

Setup COD for Specific Countries

Following are some more options related to countries where you can enable Cash on Delivery payment method for specific or all countries.

  • Payment from Applicable Countries: Set it to one of the following two options.
    • All Allowed Countries: Allows customers from all countries specified in the store configuration to use this payment method.
    • Specified Countries: When you select this option, the Payment from Specified Countries list becomes active. Select countries where you allow COD.
  • Instructions: Provide instructions regarding the Magento 2 Cash On Delivery payment method in simple words.

Set Minimum & Maximum Order Total

The Minimum Order Total and Maximum Order Total allows you to set the order amounts that should qualify them to avail the COD method.

  • Sort Order: Enter a number to determine the position of Cash On Delivery payment method with other payment methods during checkout. (0=first, 1=second, 2=third and so on).
  • Click Save Config to save the configurations.

Restricting Payment Methods Magento 2

If you're looking to restrict any of the existing payment method, then use our Magento 2 Payment Restrictions The extension allows you to restrict payment methods based on various conditions, including:

  • Specific Days and Time
  • Customer Groups
  • Cart and Product Attributes
  • Shipping Methods

To know more about the extension and how it benefits your store, book a live demo. Our Magento 2 development experts will guide you in detail about the extension.

Final Thoughts on Magento 2 COD Payment Method

Got Questions? If you have any issue in configuring Cash on Delivery Payment Method in your Magento 2 store, you can contact our support team by submitting a ticket here. Our experts will get back to you promptly.

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