Diwali 2025: Paying Extra for Cash-on-Delivery? Here is What You Need to Know

With Diwali 2025 and GST rate cuts driving record online sales across India, more shoppers are turning to e-commerce platforms for gifts and essentials. But many are now noticing an extra charge when they choose cash-on-delivery (COD). For consumers who prefer paying at delivery, this added fee feels unfair and confusing.

What Is Cash-on-Delivery (COD)?

Cash-on-delivery, or COD, lets you pay for your order only when it arrives (either in cash or through card/UPI). It’s a popular payment method among shoppers who prefer to see the product before paying or who wish to avoid sharing card details online.

Why Are You Being Charged Extra for COD?

Several online platforms have quietly added a “COD handling fee,” usually between ₹30 and ₹100. They claim this covers the cost of managing cash transactions or the risk of non-delivery. But for consumers, this feels like an unnecessary penalty for choosing a safe and trusted payment mode. Some sellers do waive these charges during festive offers, but not all.

Can You Get a Refund If You Return a COD Order on Diwali 2025?

Yes, even if you paid in cash, you can get a refund when returning a product. However, most e-commerce platforms don’t give cash refunds. Instead, the money is transferred through your bank account, UPI, or digital wallet. Refunds typically take 5–7 working days once your returned product is picked up and approved. Make sure the item is unused and returned within the return window to qualify.

Government Takes Action Against Unfair COD Charges

The government has officially called such extra COD charges a “dark pattern” , which is a practice designed to mislead consumers. India’s Consumer Affairs Ministry will be takin strict action against platforms imposing such fees. An investigation has already begun to check billing practices across major e-commerce websites.

What Consumers Should Do This Diwali 2025?

If you notice an extra charge for COD at checkout, take a moment to review your order summary. Compare the total price with other payment options. You can also raise a complaint on the National Consumer Helpline (1915) or through the consumerhelpline.gov.in portal if you feel you’ve been unfairly charged.

Read more: Govt Issues New Guidelines to Simplify Pension Payment Process.

Conclusion

Cash-on-delivery was designed for customer convenience and is not as a paid privilege. As festive shopping peaks, consumers deserve transparency and fair pricing. Being aware of these hidden COD fees ensures you’re not paying more than you should for the same product.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.