What is the maximum limit for cash on delivery?

Understanding Cash-on-Delivery Limits

Cash-on-delivery (COD) is a payment method that allows customers to pay for their purchases in cash at the time of delivery. While convenient, there are often limits imposed on the maximum amount that can be paid using COD.

COD Maximum Limit

In the context given, the maximum limit for cash on delivery is RM250 per transaction. This means that for a single order, the total amount that can be paid in cash cannot exceed RM250.

Circumventing the Limit

However, it is important to note that customers can place multiple orders to circumvent this limit. For example, if a customer wishes to purchase goods worth RM500, they can place two separate orders, each with a value of RM250, and pay for them in cash on delivery.

This method allows customers to make larger purchases using COD, despite the transaction limit. It is a viable option for those who do not have access to other payment methods or prefer the convenience of paying in cash.

Additional Considerations

While the cash-on-delivery limit may seem restrictive, it serves several important purposes:

• Minimizing Fraud: COD limits reduce the risk of fraud as the seller only receives payment once the goods have been delivered and verified by the customer.
• Ensuring Safety: Carrying large amounts of cash can be risky. By limiting the amount that can be paid in cash, COD helps protect both the seller and the customer from potential theft or loss.
• Managing Cash Flow: For businesses, setting a COD limit ensures that they have a manageable amount of cash on hand at any given time.

Customers should be aware of the COD limit and plan their purchases accordingly. By understanding this restriction and utilizing multiple orders if necessary, they can still enjoy the convenience of cash-on-delivery payment for larger purchases.