What is a woocommerce discount per payment method?

A discount per payment method refers to a pricing strategy where a seller offers a discount to customers based on the specific payment method they choose to use during a transaction.

This approach can be used in e-commerce and retail settings to incentivize customers to use certain payment methods or to pass along cost savings associated with particular payment methods to the customer.

A payment gateway on the other hand is a service that allows a customer to pay for his order using credit cards or direct payment methods.  While there are hundreds of payment methods out there, they are not all the same.

Some may be advantageous for the customers while others are more convenient for the merchants. The best way to guide the customer choice to a payment method that is convenient for the seller is to give him an incentive to do so.

In today’s article, you will learn the advantages of a discount per payment method and how to create a discount, based on the customer’s selected payment gateway at the checkout using Conditional Discounts for WooCommerce.

What are the advantages of discount per payment method?

Offering discounts per payment method can have several advantages for businesses, depending on their specific goals and circumstances. Here are some of the key advantages of implementing this pricing strategy:

  1. Cost Savings: Businesses can save money on payment processing fees when customers use payment methods that incur lower transaction costs. For example, credit card processing fees are typically higher than those for digital wallets or bank transfers. Offering discounts for lower-cost payment methods can help reduce the business’s expenses.
  2. Customer Preference: Some customers have a strong preference for specific payment methods due to factors like convenience, security, or rewards. By offering discounts on these preferred methods, businesses can cater to customer preferences and increase customer satisfaction.
  3. Competitive Edge: In a competitive marketplace, offering discounts per payment method can set your business apart from competitors. It can be a unique selling proposition that attracts customers and encourages them to choose your products or services over those of your competitors.
  4. Promotions and Marketing: Payment method-specific discounts can be used as part of marketing campaigns and promotions. They can create a sense of urgency and encourage customers to make a purchase, especially if the discount is for a limited time or applies to specific products or services.
  5. Inventory Clearance: Businesses can use payment method discounts strategically to clear out excess inventory or promote the sale of particular items. This can help improve inventory turnover and free up capital for new products or initiatives.
  6. Cash Flow Management: Discounts for certain payment methods, such as upfront cash payments or bank transfers, can improve a business’s cash flow by providing immediate funds. This can be particularly beneficial for small businesses or those with seasonal cash flow fluctuations.
  7. Reduced Fraud Risk: Some payment methods are associated with lower fraud risk. Offering discounts for these methods can incentivize customers to use them, reducing the business’s exposure to chargebacks and fraudulent transactions.
  8. Customer Loyalty: Consistently offering discounts for preferred payment methods can foster customer loyalty. Customers who regularly receive discounts for using a particular payment method may become repeat buyers and brand advocates.
  9. Data Collection: Businesses can gather valuable data about customer payment preferences and behavior when offering payment method-specific discounts. This data can inform future marketing and pricing strategies.
  10. Adaptation to Market Trends: As payment methods evolve and new options emerge (e.g., cryptocurrency, buy now, pay later), businesses can adapt by offering discounts for these methods, staying current with market trends, and appealing to a broader customer base.

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How to create a discount per payment method in WooCommerce?

  1. Click on Discounts > New Discount menu to access the new discount page.
  2. Set up the basic discount properties such as the start and end date, periodicity and user limit or leave them empty to enable the discount all the time.
  3. Then click on the Add rules group button to create a new rules set.
  4. Select “If payment gateway” as condition.
payment gateway

5. Set the operator to “IN” or “NOT IN” depending on your needs.

6. Then select the payment method you need to apply or exclude from the discount. Conditional Discounts for WooCommerce is able to automatically detect all active payment gateways in your shop even custom ones.

7. Save the discount.


In conclusion, implementing discounts per payment method in WooCommerce or any e-commerce platform can be a strategic and beneficial pricing strategy for businesses. By offering incentives for customers to choose specific payment methods, businesses can realize various advantages, including cost savings, customer loyalty, and a competitive edge in the marketplace.

However, it’s crucial to approach this strategy thoughtfully and consider the unique needs of your business and your target customer base. While offering a discount per payment method can be advantageous, it should be implemented in a way that aligns with your overall business goals and profitability objectives.

Furthermore, businesses should stay informed about the evolving landscape of payment methods and adapt their discount offerings accordingly to remain relevant and responsive to customer preferences.

Lastly, effective communication with customers is essential. Clear and transparent messaging about payment method discounts during the checkout process can enhance the customer experience and maximize the impact of this pricing strategy.

Incorporating discounts per payment method into your WooCommerce store can be a valuable tool for achieving financial objectives, improving customer satisfaction, and staying competitive in the ever-changing e-commerce landscape.

This completes our tutorial on how to create a discount per payment method using Conditional Discounts for WooCommerce. If you have any questions, use the comments section to ask.