There are a few distinguishing features of the Auto Transport industry. Cash on Delivery payments to the Transport Carrier is one of these. Because COD includes more options than just cash payments, it can also be referred to as Collect on Delivery. This refers to payments that are made through money order, bank transfer, certified check or cashier’s check.
The most efficient way for a customer (Shipper) to get their vehicle shipped is to work with a Broker throughout the process. The broker’s job is to find a carrier that best suits the Shipper’s specific transport requirements and to make sure all the administrative aspects of the shipment are in order. The largest portion of the Deposit constitutes the ‘Brokering Service Fee‘. This fee can be processed using a Credit Card.
Once the Carrier has been selected, the remainder of the payment for your shipment must be paid to the driver upon delivery.
Why the Auto Transport Industry is Primarily Cash on Delivery
In as much as the customer needs to be vigilant when negotiating with Brokers and Carriers, Auto Transporter companies are also vulnerable to fraudulent activities by customers. The COD payment system protects both parties. The customer pays for the service only once it’s been completed and the carrier, in turn, is paid in a method that cannot bounce, be cancelled or charged back.
Forms of COD Payment Accepted by Most Carriers
In order to make the transaction convenient for both customer and carrier, there are a few payment options you can choose from:
- Cash (the preferred option by most carriers)
- Online Banking Services like Paypal, CashApp, Zelle
- Certified check (not available with all carriers)
- Cashiers check (paid from the bank’s funds and is signed by a cashier)
- Money Order (prepaid, a paper document similar to a check or voucher)
Should you be unable to be at the delivery location, you can request to arrange a payment on pickup. It is always best to communicate openly with your carrier to avoid having your car held hostage until payments have been successfully processed. Prior arrangement with your Broker or Carrier allows for alternate payment methods to be discussed and implemented prior to your pickup date.
A Yellowfin Advisor will be able to assist with any questions or special requests regarding the payment process for your shipment. Contact us today for your free consultation and no obligation quote.