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How does Canada Post Collect on Delivery work?

Collect on Delivery lets a sender ship a parcel and have Canada Post collect payment from the receiver before handing it over. The receiver pays at the post office when picking up the parcel, not at the doorstep, and Canada Post remits the collected amount to the sender. There is a maximum collectable amount.

QuestionAnswer
Who pays?The receiver, at pickup
Where does the money change hands?At the retail outlet counter, when the receiver picks up the parcel
Who gets the money?Canada Post remits the collected amount back to the sender
Is there a cap?Yes, there is a maximum amount that can be collected
Can it be paid at the door?No, payment happens at the post office, not with the carrier

How does Collect on Delivery actually work?

You ship the parcel as usual and mark it for Collect on Delivery with the amount the receiver owes you. The parcel travels through the system like any other, except it is held at the retail outlet instead of going out for delivery. The receiver gets a pickup notice, goes to the post office, pays the amount, and takes the parcel. If they don't pay, they don't get the parcel.

The point is trust. The buyer doesn't pay until the parcel is physically in front of them at the counter, and the seller doesn't ship without a payment mechanism. It suits private sales, marketplace deals, and small businesses selling to customers who don't want to pay online in advance.

Where does the money change hands?

At the retail outlet counter, when the receiver picks up the parcel. This is the detail people get wrong: the carrier does not collect cash at the door. The parcel is never released to the doorstep for a COD shipment; it stays at the post office until the receiver pays at the counter. If your buyer expects to hand money to the driver, reset that expectation before you ship.

Accepted payment methods at the counter are set by Canada Post, so check what the outlet takes before you promise the buyer a specific method. After payment, Canada Post remits the collected amount to you, the sender. The remittance is a separate step after the parcel is picked up, so the money doesn't arrive the same day the parcel is collected.

What does the sender need to do?

Set the COD amount when you create the shipment, and make sure the parcel's service supports the COD option. Keep the amount under the maximum collectable limit. Then tell the buyer exactly what to expect: that they'll get a pickup notice, that they'll pay at the post office counter, and what the total is. Most COD confusion comes from buyers who assumed doorstep payment and don't have a way to get to the outlet.

Note that COD doesn't ride along with every service. It pairs with the parcel services Canada Post offers it on, and the COD option carries its own fee on top of the postage. Check the current service guide for which services accept it before you build it into your sale.

Is this the same as courier COD?

The concept is the same, but the mechanics differ. Couriers typically collect at the door from the receiver when they deliver. Canada Post collects at the retail outlet when the receiver picks up. If you're comparing options for a sale, the practical difference is convenience for the buyer: a doorstep handoff versus a trip to the post office.

Can I get a COD label through LetterAgent?

LetterAgent provides quoted Canada Post Xpresspost labels for Canada-only shipments up to 5 kg: you describe the parcel to your AI assistant, approve the exact quoted price, pay once, and get the label PDF. Collect on Delivery is a Canada Post add-on arranged with Canada Post directly; it isn't part of LetterAgent's label flow. If your sale needs COD, buy the label with the COD option through Canada Post's own channels.

Related guides

Ready to ship it? Get a shipping label with LetterAgent: describe it to your AI assistant, approve the exact quoted price, and get your label.


LetterAgent is a working name. Prices include print, postage, and our service fee. US prices in USD, Canadian prices in CAD (Canadian prices exclude applicable sales tax, added at checkout). Currently in private testing.

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