Part Payment for COD
A Small Part Online, the Rest in Cash
A shopper who has paid even a little online rarely refuses the parcel. Part payment asks for a small COD charge on small bags, or a share of the bag on bigger ones, and the courier collects the rest.
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Kosha is a demo store on Mercayo. Its products, orders and customers are sample data.
In short
What It Does
Part payment changes what a cash on delivery shopper pays, and when. It has two rules, split by a bag value you choose (₹499 to start with):
| Bag | Paid Online Now | Paid in Cash |
|---|---|---|
| Below the amount | a COD charge (₹69 to start with) | the whole bag |
| At or above it | an advance: a share of the bag (10% to start with), rounded | the rest of the bag |
The advance is rounded up to a multiple of ₹10 by default (or to the nearest), so the numbers stay simple: a ₹1,299 bag pays ₹130 now and ₹1,169 in cash.
The online part is paid through your own Razorpay account, by UPI, card or net banking, before the order is confirmed. The order waits with its stock held; once the part is paid, the order is confirmed, and it keeps both amounts: what was paid online and the cash still due. A part not paid in time (30 minutes to start with) cancels the order and frees its stock and any discount used.
While part payment is on, the plain COD fee is not used, so a shopper never pays two COD charges.
What Each Order Carries
Every part-paid order keeps its two amounts from the moment it is placed, and they follow it everywhere:
- The order page: the Payment card says "Part online, rest on delivery", with Paid Online and Cash to Collect, and later Cash Collected and anything Refunded.
- The Orders list: Cash to Collect at the top counts only the cash still due, never the part already paid.
- The packing slip: "Collect ₹1,169 in cash on delivery", the cash part only.
- The shopper's pages: "Paid ₹130 online · ₹1,169 to pay in cash on delivery" on the thank-you page, in the order email and on the order page.
For Every Order, or Only the Risky Ones
You can ask every cash shopper for a part online by switching part payment on. Or leave it off and let RTO Shield ask only the cash orders that score high risk (or medium and high): those shoppers pay the same amounts you set here, and everyone else pays in cash as usual.
For your store
Why It Matters
A refused COD parcel costs you the trip out, the trip back and days of stock away from your shelf. A small payment up front changes minds before the order, not at the door: someone who is not serious does not pay, and someone who has paid wants the parcel.
It keeps COD for the shoppers who want it. They still pay most of the order in cash, and they see exactly how much before they order: "Pay ₹130 now, ₹1,169 in cash on delivery".
And it is your call what happens when a parcel is refused anyway. By default the part paid stays with you, to cover the return trip; you can choose to refund it instead.
Paying a small part by UPI takes a shopper a few seconds, and in India almost every phone shopper already has a UPI app. A ₹69 charge or a ₹130 advance is small enough not to put off a real buyer, and large enough to make someone think twice before ordering on a whim.
Step by step
How It Works
Connect Razorpay
Part payment needs online payments through your own Razorpay account: connect it in Settings → Payments and switch on online payments. See Razorpay.
Switch On Part Payment and Set the Amounts
In Settings → Checkout and COD → Part Payment for COD, switch it on and set the bag value that splits small from larger bags, the COD charge for small bags, the advance for larger ones (up to 50%), and how the advance is rounded.
Decide What Happens to a Refused Parcel
Refund the part paid when a parcel is refused is off to start with: the part paid online covers the return trip. Switch it on if you would rather give it back.
The Shopper Sees the Split Before Ordering
Next to cash on delivery, checkout shows the split for this bag: "Pay ₹130 now, ₹1,169 in cash on delivery", or "₹69 COD charge, paid now · ₹449 in cash". The amounts come from the server's price of the bag, never from the browser.
They Pay the Part Online
Placing the order opens Razorpay for the part only. Once it is paid, the order is confirmed and its stock committed. If the shopper closes the payment window, checkout says "Payment not completed", keeps the order for the minutes left and offers PAY NOW to try again. If it is not paid in the time you allow for online payments, the order is cancelled and its stock and discount use go back.
Ship It and Collect What Is Due
The order shows both amounts: paid online and cash due, and the thank-you page, the order email and the order page tell the shopper how much to keep ready. Bulk labels through Shiprocket do not take part-paid orders yet, because Shiprocket does not publish how to collect only a part at the door: book those parcels in your Shiprocket dashboard with the cash due from the order.
Refund the Part When It Is Owed
If you cancel the order, the part paid online is marked to be refunded, and you send it back with REFUND on the order page, to the shopper's original payment method through Razorpay. If the parcel is refused, the part stays with you unless you switched on the refund. Every refund is written to the order's history, and a cancelled order with a GST invoice gets its credit note. See returns and refunds.
Your shoppers
What Your Shoppers See
The shopper sees the split next to cash on delivery before choosing it: "Pay ₹130 now, ₹1,169 in cash on delivery" on a larger bag, or "₹69 COD charge, paid now · ₹449 in cash" on a small one. Razorpay opens for the small part only, with UPI, cards and net banking. After the order, the thank-you page shows "Paid ₹130 online · ₹1,169 to pay in cash on delivery", and the order email and order page remind them how much to keep ready when the parcel comes. Your store's Terms of Sale, written from these settings, explain the amounts before anyone orders, including what happens to the part paid if a parcel is refused.
Settings
Settings You Control
Each one is in your admin. A new store starts with the value shown.
Mercayo
Mercayo's Controls
Mercayo's team can switch part payment on or off for a store, or limit the amounts (for example cap the advance at 20%), with a reason your admin shows beside the locked setting; each change is in Mercayo's audit log. Mercayo never handles the money: the online part goes straight to your own Razorpay account, and the cash part is collected by your courier.
Limits today
Good to Know Before You Start
- Part payment needs online payments through Razorpay; without a connected account it is not offered.
- There are two rules (a charge below the amount, an advance at or above it), not more tiers.
- The split is the same for every product and PIN code; it cannot be set per product or per area.
- Refunding the part paid on a refused parcel is one switch for the store, not a choice per order.
- GENERATE LABELS through Shiprocket refuses part-paid orders: their parcels are booked in your Shiprocket dashboard, with the cash due shown on the order.
Questions
About Part Payment for COD
How is the advance worked out?
It is the share you set of the bag's total after discounts, delivery and GST, rounded to the amount you choose. With 10% rounded up to ₹10, a ₹1,299 bag pays ₹130 online and ₹1,169 in cash.
Do shoppers pay a COD fee as well?
No. While part payment is on, the plain COD fee is not used. Small bags pay the COD charge instead, larger bags the advance.
What if the shopper never pays the part online?
The order waits with its stock held for the time you allow (30 minutes to start with). If the part is not paid by then, the order is cancelled, and its stock and any discount use go back.
What happens when I cancel an order that has a part paid?
The money paid online is marked to be refunded, and you refund it from the order, to the original payment method through Razorpay.
And when the shopper refuses the parcel?
By default the part paid stays with you, to cover the return trip. Switch on "Refund the part paid when a parcel is refused" if you prefer to give it back.
Can I offer plain COD to some shoppers and part payment to others?
Not by product or area. While part payment is on, it applies to every cash on delivery order in the store. To ask only some shoppers, leave it off and use RTO Shield's Ask for part payment, which asks only the cash orders that score as risky.
What does the courier collect?
Only the cash still due. The order keeps both amounts from the moment it is placed, and the packing slip, the order page and the shopper's messages all show the cash part. Parcels booked from your Shiprocket dashboard need that cash amount typed in, because bulk labels do not take part-paid orders yet.
Is the COD charge on small bags taxed?
The COD charge is a charge on the order, like delivery, so it goes on the GST invoice with your GST rate for delivery and fees (18% to start with) when your store charges GST. The advance on larger bags is not a charge: it is part of the bag's own price, paid early.
Related
Related Features
- Cash on DeliveryOffer cash on delivery with your own fee, a limit on the cash a courier collects, and the PIN codes and delivery options where it is not offered.
- COD Confirmation CodeShoppers confirm their mobile number with a 6-digit code before a cash on delivery order is placed, so orders with wrong numbers never happen.
- Online PaymentsShoppers pay by UPI, card, net banking or wallet through your own Razorpay account; Mercayo confirms every payment on its server and never holds your money.
- RazorpayPaste your Razorpay keys, test with test keys first, and Mercayo sets up the webhook secret; the money goes straight to your account.
- Returns and RefundsLet shoppers ask to return items for a refund; approve, receive and refund from one queue, with the GST credit note issued for you.
More in Cash on Delivery: Cash on Delivery · COD Confirmation Code · COD Confirmation Call · Order Clean-Up · RTO Shield
Try It on Your Own Store
Every feature is in every plan, free for 14 days.
