Set up COD fees and shipping rates

COD Verifier's COD fee setup uses Shopify shipping rates. You create a shipping rate for COD that includes the extra handling fee, then COD Verifier matches that rate and applies checkout rules so customers choose the right shipping and payment combination.

How the COD fee flow works

Shopify checkout treats fees as shipping rates, discounts, products, or other checkout line items. A direct surcharge on a payment method is not the right model for COD fees.

COD Verifier uses this pattern instead:

1. You confirm your store has a manual Cash on Delivery payment method.
2. You tell COD Verifier which payment method represents COD.
3. You choose a shipping-rate keyword, such as Cash.
4. You create a Shopify shipping rate whose name contains that keyword.
5. The shipping rate price includes the COD fee.
6. Checkout rules keep COD shipping and COD payment aligned.
7. COD Verifier updates the COD payment method label to show the extra fee.
8. Customer-facing messages explain why the COD fee applies.

Confirm your COD payment method

In Shopify admin:

1. Go to Settings > Payments.
2. Check the Manual payment methods section.
3. Confirm that Cash on Delivery (COD), Manual Cash on Delivery, or your store's COD payment method is active.

COD Verifier does not create the payment method for you. It works with the manual payment method that already exists in Shopify.

If your COD method has a custom name, use the exact name when selecting payment methods in COD Verifier. You can scan recent orders or add the method manually from COD Verifier settings.

Choose the COD method and keyword

Open COD fee setup in COD Verifier before creating the rate.

Set:

• Shipping rate keyword: the word COD Verifier should look for in the shipping rate name. A simple keyword like Cash works well.
• Extra COD fee amount: the additional fee you want to report and explain to customers.
• Apply COD fee only to first-time customers: optional. When enabled, returning logged-in customers can use COD with regular shipping, while guests and customers with no previous orders still see the COD fee rate.

Use the same keyword when you create the Shopify shipping rate. If the keyword is Cash, the shipping rate could be named Cash on Delivery, Cash on Delivery (+50), or COD Cash Handling Fee.

Create the Shopify shipping rate

In Shopify admin:

1. Go to Settings > Shipping and delivery.
2. Open General shipping rates or the shipping profile used by your COD customers.
3. Click Add rate.
4. Name the rate with the keyword from COD Verifier, for example Cash on Delivery (+50).
5. Set the rate price.
6. Add any market, zone, weight, or order value conditions you want COD to follow.
7. Click Done, then save the shipping profile.

Example: if normal shipping is 100 and your COD fee is 50, create a COD shipping rate priced at 150.

If your store normally offers free shipping and you only want to collect a COD handling fee, the COD shipping rate can be the fee amount itself. For example, set the COD shipping rate to 50 when the whole rate represents the COD fee.

Match the rate in COD Verifier

After the Shopify shipping rate exists, return to COD fee setup in COD Verifier.

Confirm:

• Shipping rate keyword: a word from the Shopify shipping rate name. If your rate is Cash on Delivery (+50), use Cash.
• Extra COD fee amount: only the additional COD fee amount. If the COD rate is normal shipping plus a fee, enter the fee portion only. If the whole rate is the COD fee, enter the full rate amount.

If you use minimum or maximum order values on the Shopify shipping rate, enter the same values in COD Verifier. These fields are used for messaging and reporting; Shopify remains the source of truth for rate eligibility.

Confirm the setup checklist

Before enabling COD fee rules, confirm that:

• You created a Shopify shipping rate for Cash on Delivery.
• The shipping rate name includes the keyword entered in COD Verifier.
• The shipping rate price includes the COD fee you want to collect.

COD Verifier requires this confirmation because the checkout rules rely on your Shopify shipping rate being configured correctly.

Enable checkout rules

When COD fee is enabled, COD Verifier manages two Shopify Function rules:

• cod-payment-method-rules: keeps the COD payment method available only when the matching COD shipping rate is selected. It also renames the visible COD payment method to include a message like Additional fee of ₱50 will be applied.
• cod-delivery-rate-rules: helps control first-time customer delivery-rate behavior when first-order-only COD fees are enabled.

Shopify shows this as a payment method customization in Settings > Payments > Payment method customizations. COD Verifier creates and updates it automatically when you save COD fee settings.

If saving fails with a checkout customization or scope error, reinstall the app or approve the required app scopes, then save COD fee settings again.

Set customer messages

Use the customer message fields to explain the fee clearly.

Recommended copy:

• COD fee message: A processing fee applies to Cash on Delivery orders.
• Prepaid alternative message: Pay online to avoid the {{currency}}{{fee_amount}} COD handling fee.
• Disclaimer: This fee covers additional processing and delivery costs for COD orders.

The prepaid alternative message supports {{currency}} and {{fee_amount}}.

The payment method label uses the Extra COD fee amount and your shop currency to show a short checkout message when the COD shipping rate is selected.

Test before going live

Place test orders for these cases:

• COD payment with the COD shipping rate.
• COD payment with a normal shipping rate.
• Prepaid payment with a normal shipping rate.
• Prepaid payment with the COD shipping rate.
• A returning logged-in customer, if first-time-only fees are enabled.

The goal is simple: customers should not be able to pick COD payment without the matching COD shipping rate, and prepaid customers should not be forced into the COD fee rate.

At checkout, the COD shipping option should be visible only where your Shopify shipping conditions allow it, and the COD payment method should line up with that shipping choice.

How this relates to OTP verification

COD fees and OTP verification are separate features, but they work well together.

For the strongest COD workflow:

1. Enable OTP verification for your COD payment method.
2. Install the Thank you and Order status extension blocks.
3. Create the Shopify COD shipping rate.
4. Enable COD fee checkout rules.
5. Test the full flow from checkout to verified order.

Start with OTP setup if verification is not configured yet.