How to Configure Cash On Delivery Payment Method in Magento 2

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Cash On Delivery is a type of transaction in which the customer makes payment to the shipping carrier when receiving the goods. This payment method is popular and convenient for buyers who do not prefer online payment methods but still want to send items to a certain address. With Magento Community Edition 2.0, you can accept and adjust Cash On Delivery payments for your store. Cash On Delivery payment method is approved by admins for only customers from specific countries and recipients can make payment by cash, check or money order. Scroll down to see its benefits and tutorials to configure in the default Magento 2 as well as Mageplaza Payment Restriction.

Cash On Delivery Payment Method

Benefits of Cash On Delivery Payment Method in e-commerce

Cash on Delivery payment method brings various benefits for merchants:

Increase conversion rates: To skeptical customers, giving them more options to feel secure about payment can make them tend to finalize their checkout quickly.
Reduce online fraud: Protect your store better with less threats from fake identities
Remove card-related issues: If a transaction has problems, a third-party card issuer has to resolve, which makes things harder for everyone.
Offer an additional option for those who do not have cards: In other cases, there may be customers who do not use cards, so cash on delivery method can be the solution for them.

Now, let’s see how to create this method in Magento 2.

3 Steps to Configure Cash On Delivery Payment Method

Step 1: Go to the Cash On Delivery Payment Section
Step 2: Complete the fields in Cash On Delivery Payment Section
Step 3: Save the configuration

Step 1: Go to the Cash On Delivery Payment Section

On the Admin sidebar, click Stores > Settings > Configuration.
In the panel on the left, choose Sales > Payment Methods > Cash On Delivery Payment.

Step 2: Complete the fields in Cash On Delivery Payment Section

In the Enabled field, pick “Yes” to activate Cash On Delivery Payment Method.
In the Title field, enter a new title to change or leave the default of “Cash On Delivery” to recognize the Cash On Delivery payment method during checkout.
In the New Order Status field, set “Pending” for new orders to wait until receipt of payment is confirmed by admin.
In the Payment from Applicable Countries field, choose “All Allowed Countries” to accept Cash On Delivery Payment Method for customers from all countries specified in your store configuration or Specific Countries to approve this payment method for some definite countries which you select from the Payment from Specific Countries list.
In the Instructions field, enter guidance for the customer to make a Cash On Delivery payment.
In the Minimum Order Total and Maximum Order Total fields, set the order amounts required to qualify for this payment method.
In the Sort Order field, enter a number to determine the position of Cash On Delivery in the list of payment methods that is shown during checkout (start from 0).

Step 3: Save the configuration

Click the Save Config button in the upper-right corner when you are done.
If you are notified to refresh the page cache, click the links in the notification, and follow the instructions.

Step 4: How to restrict the Cash on Delivery payment methods to specific locations by postcode?

Admins can limit the Cash on Delivery payment method for certain areas to prevent canceling customers’ orders from inconvenient locations.

Configure Cash on Delivery Payment Method in Mageplaza Payment Restriction extension

Mageplaza Payment Restriction extension can help store owners display or restrict this payment method based on zip codes.

Enable the module by clicking Stores -> Settings -> Configuration -> Mageplaza -> Payment Restriction in the backend configuration
In General, select Yes to turn this module on.

After enabling the module, setting up the rule is the next step. Please go to the path Sales -> Payment Restriction -> Manage Rules.

This Manage Rules section records all created rules with several pieces of information like Name, Status, Method, Store View, Customer Group, and so on. Admins can add a new rule with the restrictions for payment by choosing the Add Rule button.

In the New Rule section, there are three fields: General, Conditions, Actions.

In the Name field, you can set the name of this rule to distinguish between the other ones. For example, COD or Cash on Delivery.
Then, fill all the necessary fields. Kindly choose “Enable” to apply this rule.
In the Conditions tab, admins choose Shipping Postcode.

By selecting contains, store admins can set a range of postcodes that allow showing or hiding the Cash on Delivery payment method. Specific postcodes number will be added right after.

In the Actions section, you can select the Cash on Delivery payment method to apply the rule. Then, you are able to choose Show or Hide this method on Frontend or Backend.

Click Save Rule button in the upper-right corner when you complete it.

Step 5: How to charge an additional fee for using Cash on Delivery as a payment method

Shop owners may take some risk and additional fees when their customers choose the Cash on Delivery payment method. This is the reason why they wan to charge some extra fee when clients choose this kind of payment.

Mageplaza Extra Fee extension can help you do it with ease.

On the admin panel, click Stores -> Settings -> Configuration -> Mageplaza -> Extra Fee and select Yes to enable the module.

To create a new rule for the Cash on Delivery method, please go to Stores -> Extra Fee -> Manage Rules. The Manage Rules table will be displayed. Then you can choose the Add New Rule button.

In the General tab, you can define the name of the rule in the Name section and select Enable in the Status to turn this rule on.

In the Conditions, please select Shipping Postcodes and contains, then you can fill all zip codes that you want to apply in this rule.

In the Actions tab, admins can set the Fee type, Fee amount that you want to apply in this rule.

Click the Save button when you finish the configuration.

The bottom line

With all of its benefits, the Cash on Delivery payment method in Magento 2 is an option that online merchants should consider using. Our Payment Restriction extension even brings extra features in payment settings for your store, so feel free to take a look. The below suggested posts will give you guidelines on other payment method configurations. Leave us comments or chat with us if you have any problems or concerns. Cheers!

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