They would need to sniff your passcode as well. And if you are concerned about credit card sniffers, it is probably recommended to not swipe your card anywhere. Including debit cards at ATM machines.
I think I already made COD payment to Amazon (or Flipkart) few months ago.
I was willing to pay cash, but delivery guy said that cash above Rs 1000 was not allowed and we have to pay be debit/credit card. He just inserted some card reader module to his Samsung phone, and I entered pin on that module. After transaction was successful, I got sms of payment made to Amazon.
Flipkart accepted these payments many years ago. People used to post photos on Twitter etc. Not sure if they still do that. I usually do not use CoD so have not noticed this.
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