FedEx COD To Canada: A Complete Guide

Nick Leason

-Oct 23, 2025

Are you shipping to Canada and need a reliable way to collect payment upon delivery? FedEx Cash on Delivery (COD) service might be the solution. But how does it work, what are the costs, and is it the best option for your business? This comprehensive guide dives deep into FedEx COD services to Canada, covering everything from eligibility and procedures to potential drawbacks and best practices. We'll explore who benefits most and offer insights to help you make informed shipping decisions.

Key Takeaways

Convenience: FedEx COD allows you to receive payment from the recipient when the package is delivered. This helps minimize risk, especially for new or high-value clients.
Fees Apply: There are additional fees associated with FedEx COD services, which can impact your overall shipping costs.
Currency: FedEx typically handles COD payments in Canadian dollars (CAD), simplifying transactions for your Canadian customers.
Limitations: Certain restrictions apply to COD shipments, including weight and value limits. Not all products are eligible.
Alternative Options: Explore alternative payment options like online payment gateways if COD is unsuitable for your needs.

Introduction

For businesses sending goods to Canada, securing payment is critical. FedEx Cash on Delivery (COD) offers a solution by collecting payment from the recipient at the time of delivery. This service can provide peace of mind and improve cash flow, especially when dealing with new customers or high-value orders. However, understanding the specifics of FedEx COD to Canada is essential to determine if it aligns with your shipping needs and budget. This guide will provide the details.

What & Why

What is FedEx COD?

FedEx COD service allows shippers to collect payment (cash, check, or money order, depending on the service) from the recipient when the package is delivered. FedEx acts as the intermediary, collecting the funds and remitting them to the shipper. This feature offers a level of security, ensuring payment before the recipient receives the goods. — Does CVS Sell Stamps? Hours, Prices, And More

Why Use FedEx COD to Canada?

Reduced Risk: Minimize the risk of non-payment, particularly beneficial for new or unfamiliar customers.
Improved Cash Flow: Receive payment quickly upon delivery, improving your cash flow cycle.
Customer Convenience: Provides a payment option for customers who prefer to pay upon receipt of goods.
Trust Building: Offers a secure payment method, potentially building trust with customers who might be hesitant to pay upfront.

Benefits of FedEx COD

The primary benefit is the added security of payment. Other benefits include:

Security: Reduces the risk of non-payment compared to other methods.
Flexibility: Allows customers without credit cards or access to online payment platforms to still purchase goods.
Control: Gives shippers control over when they receive payment.

Risks & Limitations of FedEx COD

While COD offers advantages, there are drawbacks to consider: — Why Can't I Watch 'Monday Night Football'?

Additional Fees: FedEx charges extra fees for COD service, increasing the overall shipping cost.
Payment Delays: It may take some time for FedEx to remit payments to the shipper.
Recipient Refusal: If the recipient refuses the shipment, you are responsible for the return shipping costs.
Payment Method Limitations: COD may only accept certain payment forms like cash or check (check availability with FedEx).
Weight & Value Restrictions: There are usually limits on the weight and value of COD shipments.

How-To / Steps / Framework Application

Steps to Use FedEx COD to Canada

Check Eligibility: Ensure your shipment meets FedEx COD service requirements, including package weight, value, and content restrictions. Confirm that your recipient accepts the payment method you plan to use (cash, check, etc.).
Choose the Service: Select the appropriate FedEx shipping service that supports COD to Canada (e.g., FedEx Express, FedEx Ground – verify availability with FedEx for your specific needs).
Complete the Shipping Label: When creating your shipping label, specify the COD service and provide the amount to be collected. Include your company's information to receive payment.
Prepare the Package: Package your goods securely, ensuring they can withstand international shipping.
Submit the Shipment: Drop off your package at a FedEx location or schedule a pickup.
Payment Collection: FedEx will attempt to collect payment from the recipient upon delivery.
Receive Payment: Once collected, FedEx will remit the payment to you, typically via check or electronic funds transfer (EFT). The payment timeframe varies, so check FedEx's current policies.

Setting Up FedEx COD: Step-by-Step Guide

Create a FedEx Account: If you don't already have one, create a FedEx account. This is essential for managing your shipments and accessing shipping services.
Choose the Right Service: Select a FedEx service that supports COD to Canada. Not all services offer COD.
Complete Shipping Forms: Fill out the necessary shipping forms, including the COD section, specifying the amount to be collected and the payment method accepted. Be as accurate as possible to avoid issues.
Package Your Shipment Securely: Proper packaging prevents damage during transit. Protect your items adequately.
Schedule a Pickup or Drop-Off: Arrange for FedEx to pick up your package, or drop it off at a FedEx location.
Track Your Shipment: Use the FedEx tracking system to monitor your shipment's progress.
Receive Payment: FedEx will send you payment, minus any applicable fees, once the COD amount is collected from the recipient.

Examples & Use Cases

Case Study: Small E-commerce Business

Scenario: A small online store selling handcrafted goods wants to expand sales to Canada. They are concerned about potential fraud and want to ensure they get paid for each order.
Solution: They use FedEx COD. This allows them to collect payment directly from the Canadian customer upon delivery. This gives the business peace of mind and improves their cash flow.
Result: The business was able to quickly build a loyal customer base in Canada. They felt more comfortable expanding into a new market.

Real-World Example: Retailer to Consumer

A clothing retailer in the United States ships a high-value jacket to a customer in Toronto. Because of the jacket's price, the retailer chooses FedEx COD to eliminate the risks of non-payment. The customer pays the FedEx driver upon delivery. This allows the customer to purchase the jacket without having to use a credit card and provides the retailer with immediate payment.

When FedEx COD Is Most Useful

High-Value Items: For expensive products where secure payment is critical.
New Customers: To build trust and mitigate risk with customers you are unfamiliar with.
Limited Online Payment Options: When your customers prefer or need to pay in cash or by check.
B2C Sales: Especially for businesses selling directly to consumers.

Best Practices & Common Mistakes

Best Practices for FedEx COD to Canada

Accurate Labeling: Ensure all COD details on the shipping label are correct, including the amount, currency (CAD), and payment instructions.
Packaging: Package your items securely to prevent damage during transit.
Communicate with the Recipient: Notify the recipient about the COD shipment and the expected payment amount. This helps prevent refusals.
Track Your Shipment: Monitor the shipment's progress using FedEx tracking to stay informed about its status.
Compare Costs: Factor in all fees and compare them with alternative payment options.

Common Mistakes to Avoid

Incorrect COD Amount: Ensure the amount to be collected is accurate to avoid payment disputes.
Incomplete Label Information: Missing information can delay or prevent delivery and payment collection.
Poor Packaging: Inadequate packaging can result in damaged goods, leading to refused shipments and costs.
Not Considering Fees: Failing to account for COD fees can reduce your profit margins.
Not Communicating with the Recipient: Failing to notify the recipient may result in the package being rejected.

FAQs

What payment methods are accepted for FedEx COD to Canada? Payment methods may vary, but typically include cash, check, and money order. Confirm the accepted payment methods with FedEx for your specific service.
How are COD payments remitted to the shipper? Payments are usually remitted by check or electronic funds transfer (EFT). The exact process depends on FedEx's current policies.
What are the fees for FedEx COD service? Fees vary depending on the service and the value of the shipment. Check with FedEx for current rate information.
Are there weight or value limits for FedEx COD to Canada? Yes, FedEx typically has restrictions on the weight and value of COD shipments. Check the latest FedEx guidelines.
What happens if the recipient refuses the COD shipment? If the recipient refuses the shipment, you are responsible for the return shipping costs. The package will be returned to the sender.
Can I use FedEx COD for international shipments outside of Canada? FedEx COD availability varies by country. Confirm service availability for your destination country with FedEx.

Conclusion with CTA

FedEx COD to Canada can be a valuable service, providing security and flexibility for businesses selling goods to Canadian customers. However, understanding the associated fees, limitations, and best practices is essential for making informed shipping decisions. Before you decide, carefully evaluate your business needs and the preferences of your customers.

Ready to ship to Canada? Contact FedEx today to explore your COD options and get a quote. — UPS Notary Service Fees: What You Need To Know

Last updated: October 26, 2023, 11:30 UTC