How to Charge an Additional Fee for Cash on Delivery Orders
How to Charge an Additional Fee for Cash on Delivery Orders
Couriers and logistics carriers frequently charge merchants an extra fee (often $3 to $8) to handle physical cash collection and remittance on Cash on Delivery orders. Passing this handling charge to the buyer offsets your fulfillment costs and encourages customers to pay upfront.
Because Shopify does not have a native "surcharge" feature on payment methods, Rivio utilizes Shopify's native Shipping Rates engine. By creating a custom shipping rate with a dedicated keyword (such as cash), Rivio identifies the rate and ensures COD is only available when the customer accepts the handling fee.
In this guide, you will learn how to create your COD shipping rate in Shopify and activate the fee in Rivio.
Before You Begin
Before setting up your COD fee, ensure that:
- You have configured your delivery zones in Shopify under Settings → Shipping and delivery.
- Rivio COD & Partial Payments is installed on your store.
Step-by-Step Instructions
Step 1: Create the COD Shipping Rate in Shopify
- In your Shopify admin, click the Settings gear icon in the bottom-left corner.
- Select Shipping and delivery.
- Under the Shipping profiles section, click on your main profile (usually titled General profile).
Shopify Settings Shipping and delivery page showing General profile
- Scroll down to your shipping zone (e.g., *Domestic* or *United States*).
- Click Add rate.
- Set the rate options:
- Choose Set up your own rates.
- In Rate name, type a title that includes the keyword
cash(for example:Standard Delivery + Cash on Delivery Fee (+$5)). - In Price, enter the total shipping charge including the COD handling fee (e.g., if standard shipping is $5 and your COD fee is $3, enter
$8.00).
- Click Done, then click Save in the top-right corner.
Shopify shipping rate editor showing Rate name with keyword 'cash' and price
Step 2: Enable the Fee in Rivio
- In your Shopify admin, open Apps → Rivio COD & Partial Payments.
- In the navigation sidebar, click Features, then select COD fee.
- Check the box labeled Enable COD fee.
- In the Shipping rate keyword field, confirm that the keyword matches the word used in your Shopify rate name (default is
cash). - *(Recommended)* Check the box labeled Require the COD shipping rate for COD payments. This automatically hides the Cash on Delivery payment option if a customer chooses a cheaper, standard shipping rate that does not include your fee.
Rivio COD fee settings page showing Enable COD fee toggle and keyword field
- Click Save in the top-right corner.
Configuration Settings & Options
| Setting | Default | Description | Best Practice Recommendation |
|---|---|---|---|
| Enable COD fee | Off |
Toggles the fee matching rules on or off. | Turn On once your Shopify shipping rate is created. |
| Shipping rate keyword | cash |
The word Rivio looks for inside your Shopify shipping rate names. | Keep cash to easily match rates like *Standard Shipping + Cash Fee*. |
| Require COD shipping rate | Off |
Hides COD unless the recognized fee rate is selected at checkout. | Turn On to prevent buyers from bypassing your fee. |
Example Scenario
Covering Courier COD Processing Surcharges
A merchant in the UK pays an extra £4.00 courier handling surcharge on every cash-collected shipment. In Shopify, they create a shipping rate named Express Courier (Cash on Delivery) priced at £7.99 (standard delivery £3.99 + £4.00 COD fee). In Rivio, they turn on Require the COD shipping rate for COD payments. When a shopper reaches checkout, choosing standard delivery hides COD; selecting the Express Courier rate instantly unlocks Cash on Delivery.
Important Notes & Limitations
Store pickup, local delivery, and pickup points are automatically exempt from the shipping rate requirement because they do not use standard shipping profiles.
Because Shopify keeps your shipping rates private and secure, Rivio cannot read your shipping rates automatically. Placing a test order confirms that your rate name and keyword are functioning properly.
Troubleshooting
The COD fee shipping rate does not appear at checkout
- Possible Cause: The shipping rate was added to the wrong shipping zone or the order cart weight/price falls outside your Shopify shipping rate conditions.
- How to Fix:
- Open Shopify Settings → Shipping and delivery → General profile.
- Confirm that your rate with the keyword
cashis added to the customer's delivery zone.
Customers can choose Cash on Delivery without paying the fee
- Possible Cause: The checkbox Require the COD shipping rate for COD payments is currently turned off.
- How to Fix:
- Open Apps → Rivio COD → Features → COD fee.
- Check Require the COD shipping rate for COD payments and click Save.
Related Guides
- How to Configure the Shipping Rate Keyword in Shopify Shipping Profiles
- How to Require the COD Shipping Rate for COD Checkout
- Why Did the COD Shipping Rate Fee Not Apply at Checkout?
Need Help?
Need assistance configuring shipping rates or fee keywords? Our team is here to help!
- Email: Contact our Shopify integration specialists at support@rivioapps.com
- Help Center: Explore all setup guides in the Rivio COD Knowledge Base
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