Cash on delivery (COD): paying for a food order at the door
Updated October 20, 2026
Cash on delivery (COD) means the customer pays for a delivery order when it arrives, usually in cash to the driver, instead of paying online at checkout. For pickup orders the same idea is called "pay at store." COD avoids card fees and suits customers who don't want to pay online, but the restaurant carries the risk of an order nobody pays for.
In short
- COD = pay at the door. Prepaid = paid online when ordering.
- For the restaurant: no card fee and no chargebacks, but cash to count, change to carry and orders that may not be paid.
- Controls: limit COD to some order types, set a minimum order, and record how every COD order was paid.
- On Menuthere you switch cash and online payment on or off for delivery, takeout and dine-in separately.
COD vs prepaid
| Cash on delivery | Prepaid online | |
|---|---|---|
| When the customer pays | At the door | At checkout |
| Fee to the restaurant | None | A payment processing fee |
| Risk | Customer not home, refuses, or short of cash | A disputed card payment |
| Driver handles money | Yes | No |
| Money reaches your bank | When you deposit the cash | On your processor's payout schedule |
| Customer trust | Higher for first-time or wary customers | Higher for regulars |
A month: what COD saves, and what it costs
A restaurant delivers 200 orders a month at an average of $30. 40% of customers pay cash at the door.
| Amount | |
|---|---|
| COD orders | 80 |
| Cash collected by drivers | 80 × $30 = $2,400 |
| Card fees avoided at 2.9% + 30¢ | 80 × $1.17 = $93.60 |
| Card fees still paid on 120 prepaid orders | 120 × $1.17 = $140.40 |
The $93.60 saving is real, but so are two costs that don't appear on a statement: drivers carrying cash, and the time it takes to count and reconcile it each night. One unpaid $30 order a week, about $129 a month, would cost more than the whole saving. (Illustrative figures.)
How to keep COD under control
- Offer it where it makes sense. For example cash for takeout and dine-in, online-only for delivery, or the other way round.
- Set a minimum order for delivery so small COD orders don't cost more than they earn. See delivery zone.
- Know who the customer is. A verified phone number and a delivery contact number make no-shows less likely.
- Record every COD payment when the driver returns, so cash and orders match at the end of the night.
How Menuthere handles cash on delivery
- Cash is always available. Cash payment is always on for the store, so a store without online payments can still be paid. On the Free plan every order is paid in cash.
- Cash or online per order type. Once online payment is on (Lite), each of Delivery, Takeaway and Dine-in has an Online and a Cash switch. Turn off cash on delivery to take delivery payment only online. At checkout the customer sees Pay online and Cash on delivery for delivery, or Pay at store for other orders.
- Who the customer is. Customers sign in with their phone number when they continue from the cart, and delivery and takeaway checkouts ask for the number a driver should call.
- The COD badge. In the Orders list, an order the customer pays on delivery shows COD. Press it to record how it was paid (cash, card or another method); the order is then marked paid. See record how an order was paid.
- Your own drivers. On Pro, your drivers deliver with the rider app and can collect cash at the door. See delivery dispatch.
- Analytics. The Payments card splits takings into Prepaid (paid online) and COD (pay on delivery), with a line saying how much settles to your bank and how much you collect yourself.
What it doesn't do: Menuthere doesn't reconcile a driver's cash bag for you or block repeat no-show customers automatically. Record each COD payment, and switch cash off for an order type if no-shows become a problem.
Take cash, card or both, set separately for delivery, takeout and dine-in. 0% commission.
Related terms
- Payment processing fee: what card payments cost instead.
- Chargeback: the card-payment risk COD avoids.
- Delivery dispatch: assigning the driver who collects the cash.
- Delivery zone: where you deliver, and a minimum order.
FAQs
What does cash on delivery mean for food orders?
Cash on delivery means the customer pays for the order when it is delivered, usually in cash to the driver, instead of paying online at checkout. For pickup orders it is often called pay at store.
Is cash on delivery good for restaurants?
It has trade-offs. It avoids card fees and chargebacks and suits customers who prefer not to pay online, but drivers carry cash and some orders may go unpaid. Many restaurants offer it only for some order types or above a minimum order.
Can I turn off cash on delivery but keep cash for pickup?
On Menuthere, yes, once online payment is on. Each order type has its own Online and Cash switch, so you can take delivery payments only online and still accept cash for takeout or dine-in.
How do I record a cash-on-delivery payment?
On Menuthere, press the COD badge on the order in the Orders list and choose how it was paid. The order is marked paid, and Analytics counts it under the payment method you chose.
Do Menuthere's Free plan stores take cash on delivery?
Yes. On the Free plan there is no online payment, so every order is paid in cash, at the door or at the store. Online payments start on the Lite plan.
Sources (5)
- Menuthere help: Payment options for each order type, updated 7 Oct 2026 (Online and Cash switches per order type; cash always on for the store; Pay online / Cash on delivery / Pay at store at checkout; table QR orders follow Dine-in; Free has no online payment, every order paid in cash; Lite): https://menuthere.com/docs/checkout-payments/payment-options-for-each-order-type (accessed 20 Oct 2026)
- Menuthere help: Record how an order was paid, updated 7 Oct 2026 (COD badge; "How was it paid?"; marked paid; Prepaid; COD + method badges): https://menuthere.com/docs/orders/record-how-an-order-was-paid (accessed 20 Oct 2026)
- Menuthere help: Sales analytics, updated 10 Oct 2026 (Payments card: Prepaid (paid online) and COD (pay on delivery); settles to bank vs collected directly): https://menuthere.com/docs/analytics/sales-analytics (accessed 20 Oct 2026)
- Menuthere help: Collect payment at the door, updated 6 Oct 2026 ("No QR: collects cash only … Cash on delivery"; Pro): https://menuthere.com/docs/delivery/collect-payment-at-the-door (accessed 20 Oct 2026)
- Stripe Support, Manually entered card payments (US standard card price 2.9% + 0.30 USD): https://support.stripe.com/questions/manually-entered-card-payments (accessed 20 Oct 2026)