Cash on delivery in the Gulf: fees, limits and alternatives

How cash on delivery works

With cash on delivery (COD) you confirm the order without paying upfront, then pay the courier in cash, or by card on a point-of-sale device where available, when you receive the parcel. The benefit is that you pay only after the order arrives, which helps with a store you are using for the first time.

But COD costs the store and courier more than electronic payment, because of cash handling and higher refusal rates, so:

• Many stores charge an extra COD fee.
• They cap the order value or the number of open orders.
• They exclude certain products or delivery methods, such as smart lockers or international shipping.
• They may withdraw COD from customers who repeatedly refuse orders.

Many discount codes apply to the product value only, so they do not reduce the COD fee. Some offers require electronic payment in the first place.

Fees and limits at major stores

Fees are set by stores, not governments, so they vary and can change without notice. These examples come from the stores' official help pages as they appeared when we checked:

noon also says some items are prepaid-only and that customers with several pending COD orders may be temporarily blocked from new COD orders. Amazon Saudi Arabia says COD does not cover third-party seller items, Global Store, digital products, extended warranties or pick-up points.

Example: a SAR 200 order with a 10% code. You pay SAR 180 for the product, then SAR 18 for COD on noon. The fee wipes out almost all of the discount. Paying with a mada card keeps that money.

What happens if you refuse a parcel at the door

Refusing a COD parcel usually costs you no money directly, since you have not paid yet, but it has consequences:

• Losing COD: Amazon Saudi Arabia says frequent cancellations or refusals may remove COD from your account.
• Limits on new orders: noon says it may temporarily restrict customers with pending COD orders.
• Non-refundable fees: if part of the order was prepaid, or the COD fee is non-refundable as at Amazon Saudi Arabia, you may not get that part back.
• International orders: if you refuse an international parcel after customs clearance, duty may remain due or non-refundable depending on the courier.

If you change your mind, it is better to cancel in the app before the order goes out for delivery. In Saudi Arabia, if you accept the item and then want to cancel, the E-Commerce Law gives you 7 days from receipt provided it is unused, with you bearing return costs unless agreed otherwise.

We found no official text in any of the six countries that fines consumers for refusing a COD order; consequences are set by store policies.

Local alternatives: a national network in each country

Each Gulf state has a national payment network linked to bank debit cards, and most work at local online stores. These are the names as they appear in official sources:

Important notes:

• In Saudi Arabia, SAMA rules state that mada purchases at domestic online stores run through the mada network, while purchases from stores outside the Kingdom go through international payment companies.
• Himyan is designed for the local market, and first-time issuance is free for local bank customers according to the central bank's announcement.
• Maal is currently for use inside Oman. The Central Bank of Oman says it is an additional option that does not replace existing cards and carries no additional fees.
• In the UAE, Al Etihad Payments' Aani platform offers instant transfers up to AED 50,000. We could not confirm which stores accept it at checkout.

Other options: wallets, instalments and international cards

• Mobile wallets: SAMA notes that apps such as mada Pay and Apple Pay link directly to the bank account within card transaction limits. Paying by wallet does not reveal your card number to the store.
• Buy now, pay later: offered by many Gulf stores to split the amount. Read the late-payment terms first; they differ between providers and countries.
• International cards (Visa and Mastercard): suited to foreign stores, but watch for the foreign-currency fees your bank sets.
• Prepaid cards: useful if you want a fixed online spending limit without linking your main account. Himyan, for instance, comes as a prepaid or debit card.

When cash on delivery makes sense

Cash on delivery makes sense in specific cases:

• A new store whose reputation you do not know yet, and a small order.
• You do not have a card enabled for online purchases.
• You want to see the parcel before paying, although couriers usually do not let you open the product before payment.

It is often a poor fit for:

• Large orders above the store's limit.
• Offers that require electronic payment, or discount codes tied to a specific bank's cards.
• Small orders where the COD fee eats much of the discount.
• Peak seasons such as Black Friday on 27 November 2026 and the expected White Friday, when stores may restrict COD.

If you pay electronically, use your country's local network at local stores and keep the transaction receipt; it makes refunds easier after a return.

Safety tips when paying the courier

1. Match the order number and store name with the parcel before paying.
2. Have exact cash ready if paying cash, and ask for a receipt or in-app confirmation.
3. If paying by card on the courier's device, check that the amount shown matches the amount in the app.
4. Do not share a code sent to your phone with the courier unless it is a delivery-confirmation code the app explicitly asks for, and never share a bank transaction code.
5. Ignore payment links in messages that do not come from the store's or courier's official app.