Settlement cycle
Also known as: COD payout cycle · Merchant transfer cycle
A settlement cycle is the published cadence on which a COD platform transfers collected cash from its accounts to the merchant\'s bank account. Faster cycles preserve merchant cash flow; slower cycles indicate operator risk or weak finance ops.
Best-in-class COD platforms publish a 7-day settlement cycle as their SLA. Many carriers and weaker operators run 14-30 day cycles, which crushes merchant cash flow — by month 3 the merchant cannot reinvest in inventory.
The cycle SLA is typically structured per-week: cash collected Monday-Sunday is reconciled and transferred the following week. Settlements can arrive in USD or local currency depending on the merchant's preference.
Merchants should treat a published settlement SLA as a non-negotiable when picking a COD partner — and verify in the first 60 days that the published cycle actually holds.
COD finance ops
COD finance ops is the end-to-end financial workflow that moves money from the customer\'s doorstep to the merchant\'s bank account: cash collection coordination, reconciliation per order, currency conversion, and settlement cycle to the merchant.
Reconciliation (COD)
Reconciliation in COD is the process of matching cash collected by carriers at the doorstep with the orders shipped — per order, per carrier, per day — to produce an auditable accounting of money owed to the merchant.
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