What does C.O.D stand for in financial terms?

The term "C.O.D." in financial terms stands for "Collect on Delivery." This concept is commonly used in transactions where payment is required at the time of delivery of goods or services. When an item is sold with a C.O.D. designation, the buyer is expected to pay the delivery person or service provider at the moment they receive the item. This arrangement provides both the seller and the buyer with certain assurances; the seller knows that payment will be received upon the buyer receiving the goods, and the buyer can inspect the item before completing the payment.

While cash on demand, credit on demand, and check on delivery are all financial phrases, they do not accurately capture the commonly used definition of C.O.D. Collect on delivery is distinct in that it specifically refers to transactions that require a payment upon the delivery of goods, making it the standard interpretation of the abbreviation in the context provided.