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  1. Paid cash on delivery? Know your refund rights as govt cracks down on unfair e-commerce practices

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Paid cash on delivery? Know your refund rights as govt cracks down on unfair e-commerce practices

Upstox

2 min read | Updated on October 07, 2025, 13:07 IST

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SUMMARY

Cash-on-delivery is a payment method where the buyer pays for the product in cash (or via card/UPI) at the time of delivery, not while placing the order online.

Cash-on-delivery

Many platforms charge a COD handling fee (usually ₹30–₹100). | Image: Shutterstock

With the festive season driving a surge in online shopping across India, transparency in billing has become a growing concern for consumers. While e-commerce platforms actively promote digital payments, adding extra charges for choosing the widely preferred cash-on-delivery (COD) option is increasingly seen as unfair and misleading.

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What is cash-on-delivery?

Cash-on-delivery or COD is a payment method where the buyer pays for the product in cash (or via card/UPI) at the time of delivery, not while placing the order online.

How does COD work?
  • You place an order and select “Cash on Delivery” as the payment option.

  • The seller ships the product without upfront payment.

  • At delivery, you pay in cash (or sometimes card/UPI).
  • Once paid, the delivery agent hands over the package.

Are there extra charges for COD?

Yes, many platforms charge a COD handling fee (usually ₹30–₹100) However, some sellers waive COD charges as a promotional offer.

Can I get a refund if I paid for COD and return the product?

Yes, you can get a refund if you paid for a product using the COD option and then return it.

Here's how COD refunds usually work:

1)Even if you paid in cash, most e-commerce platforms don’t refund in cash. Instead, they refund the amount through:

⦁ Bank transfer (you’ll need to enter your account details)

⦁ UPI or wallet

2)Refunds are typically processed within 5–7 business days after the returned item is picked up and approved.

3)The product must be eligible for return. It must be in unused/original condition, and returned within the return window.

The government has taken serious note of e-commerce platforms charging additional fees for cash-on-delivery (COD) orders, a practice now officially labeled as a “dark pattern”. Consumer Affairs Minister Pralhad Joshi recently announced that the government will take strict action against online platforms found to be imposing extra charges on COD orders.

A detailed investigation has been initiated, and steps are being taken to scrutinize these platforms closely.

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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