Cash On Delivery is a type of transaction where the customer pays the shipping carrier upon receiving the goods. This payment method is popular and convenient for buyers who prefer not to use online payment methods but still wish to receive goods at a specific address. With Magento Community Edition 2.0, you can enable and customize Cash On Delivery payments for your store. This method is approved by admins for specific countries, and recipients can pay via cash, check, or money order. Below, you’ll find its benefits and a step-by-step guide to configuring this payment method in Magento 2.

Cash On Delivery

Benefits of Cash On Delivery Payment Method in E-commerce

The Cash On Delivery payment method offers several advantages for merchants:

  • Increase conversion rates: Provides an option for skeptical customers to feel secure, encouraging them to complete their checkout.
  • Reduce online fraud: Minimizes risks associated with fake identities and unauthorized transactions.
  • Remove card-related issues: Avoids delays caused by disputes or problems with third-party card issuers.
  • Support customers without cards: Serves customers who do not use or have access to credit or debit cards.

How to Configure the Cash On Delivery Payment Method

Step 1: Navigate to the Cash On Delivery Payment Section

  • On the Admin sidebar, go to Stores > Settings > Configuration.
  • In the left-hand panel, select Sales > Payment Methods > Cash On Delivery Payment.

Step 2: Fill Out the Cash On Delivery Payment Fields

  • Enable: Select "Yes" to activate the Cash On Delivery payment method.
  • Title: Enter a custom title or use the default "Cash On Delivery" for display during checkout.
  • New Order Status: Set to "Pending" to ensure orders are verified upon payment receipt.
  • Payment from Applicable Countries: Choose "All Allowed Countries" to enable for all specified regions, or "Specific Countries" to restrict availability to selected countries.
  • Instructions: Provide clear guidance for customers on how to make a payment via Cash On Delivery.
  • Minimum and Maximum Order Total: Specify the order value range eligible for this payment method.
  • Sort Order: Assign a number to define its display order among payment methods at checkout.
Cash On Delivery Payment Section

Step 3: Save the Configuration

  • Click the Save Config button in the top-right corner.
  • If prompted, refresh the page cache as instructed in the notification.

Step 4: Restrict Cash On Delivery Payment by Postcode

Admins can restrict the Cash On Delivery payment method for specific locations to avoid order cancellations from inconvenient areas.

  • Navigate to Sales > Payment Restriction > Manage Rules.
  • In the Manage Rules section, view or create rules with details such as Name, Status, Method, Store View, Customer Group, etc. Click the Add Rule button to create a new restriction.
  • In the New Rule section, fill out the fields under General, Conditions, and Actions.
  • In Conditions, select Shipping Postcode and specify a range or individual codes to allow or restrict the payment method.
  • In Actions, choose "Show" or "Hide" the Cash On Delivery payment option on the frontend or backend.
  • Click Save Rule when finished.
Restrict Payment by Postcode

Step 5: Add an Additional Fee for Cash On Delivery

To offset risks and costs, merchants can apply an extra fee for the Cash On Delivery payment method:

  • Go to the General tab, define the rule name, and set its status to "Enable".
  • In Conditions, select Shipping Postcodes and specify the applicable postcodes.
  • In Actions, set the Fee Type and Fee Amount for the rule.
  • Click Save to finalize the configuration.

Conclusion

With its numerous advantages, the Cash On Delivery payment method is a valuable addition to your Magento 2 store. By following the steps above, you can effectively configure and customize it to meet your business needs. Explore other payment configuration options, and feel free to leave comments or chat with us if you encounter any issues. Cheers!