How to Add Discounts based on Payment Method in WooCommerce?

payment gateway for woocommerce

WooCommerce Discounts are an excellent way to increase sales and attract new customers. Adding a discount to your WooCommerce store can encourage your customers to take action and increase conversions.

There will be multiple payment options at the checkout, each unique to one another. Some payment options will charge additional transactions fees while some don’t.

This is where most customers will abandon their cart due to the lack of cost-effective and favourable payment options. Now, offering discounts based on these payment methods will encourage customers to complete their purchase orders quickly and prevent additional transactional fees.

In this article, we’ll discuss the importance, advantages, and how to setup discounts based on payment methods in your WooCommerce store using real-world examples.

Why do we need payment methods in WooCommerce?

When you have a WooCommerce store, providing discounts is important to improve your store in all aspects. When customers discover a product ideal for them, at last, they should not explore other stores for payment options.

Providing specific options and discounts on payment methods for customers will enhance customers to complete the purchase successfully at your WooCommerce store.

For example, Free shipping for Direct bank Transfer.

The above scenario illustrates that among various payment options, the customer will prefer the Direct bank Transfer payment option to avail of the free shipping.

As a result, the customer can complete the purchase order quickly without hesitation and with a limited number of possibilities.

Benefits of implementing payment method based discounts

In general, acquiring a different payment method is good and makes it easy to choose one over the other. However, most of the customers’ purchase orders were unsuccessful because customers were not given a choice.

Some of the benefits of Offering discounts based on payment methods are:

  • Drive your sales
  • Aids to meet the store ROI
  • Boost your brand reputation
  • Reduce cart abandonment
  • Enhance customer loyalty
  • Increase conversion

How to setup payment methods in WooCommerce

You can create discounts based on payment methods at your WooCommerce store by following the guidelines below.

  1. In your WordPress dashboard, Click plugin -> Add new and search for the plugin WooCommerce, install, and activate it in your store as described below.
woocommerce plugin install

2. After installing WooCommerce, go to WooCommerce -> Settings -> Payments.

woocommerce payments

You will find available payment methods from which you can selectively enable or disable payment options and set up payment methods on WooCommerce.

Also, there will be some default methods; if you want other popular payment methods, you can set them up using different plugins.

Different Types of Payment Methods in WooCommerce

You can observe that 3 payment methods have already been set up by default as you access your WooCommerce payment page.

  • Direct bank transfer
  • Cash on delivery
  • Check payments
different payments method

Direct bank transfer:

Direct bank transfer is an offline payment method. You can incorporate this payment method in your WooCommerce store to let your customers make payments directly to your bank account.

To add a Direct bank transfer payment option to your WooCommerce store, follow the below steps.

  1. Go to WooCommerce -> Settings -> Payments -> Direct bank transfer
direct bank transfer

2. Add your account details where you want to receive your payments.
3. If you like, you can customize the title and description.
4. Click the option Enable bank transfer.
5. Click Save changes to set up the payment option completely.

direct bank transfer steps

Cash on Delivery:

Cash on Delivery is a great payment option if you expect customers from countries where Cash on delivery is preferred over online payments. After receiving their purchases, customers can pay for their products with cash.

To add Cash on delivery as a payment option to your WooCommerce store, follow the below steps.

  1. Go to WooCommerce -> Settings -> Payments -> Cash on delivery
cash on delivery

2. If you like, you can customize the title and description.
3. Choose the shipping methods
4. Click the option Enable cash on delivery
5. Click Save changes to set up the payment option completely.

cash on delivery steps

Check Payments:

Check payment is another offline payment method similar to the Direct bank transfer payment method, where customers can make their payment using checks.

To add Check payment as a payment option to your WooCommerce store, follow the below steps.

  1. Go to WooCommerce -> Settings -> Payments -> Check payments
check payments

2. If you like, you can customize the title and description.
3. Click the option Enable check payments.
4. Click Save changes to set up the payment option completely.

check payments steps

Order status is automatically put on hold when consumers pay with checks.

WooCommerce store owners can visit the orders page and update the order’s status to complete, where customers can receive the products.

Take a look at the below order page image to understand the workflow.

workflow understand one
workflow understand two

How to provide discounts based on payment methods in your WooCommerce store?

WooCommerce has limited features, it does not support providing discounts based on specific methods to your customers. To enhance the customers’ experience here, we will provide discounts based on payment methods using the plugin Discount Rules for WooCommerce.

The scenarios below will show you how to configure discounts on specific payment methods using Woo discount rule.

Install the Discount Rules for WooCommerce Plugin by following the steps,

Step 1: Log into your WordPress Dashboard and go to the Plugins section.

Step 2: Click on the “Add New” button as illustrated below,

add new plugin

Step 3: Search for the plugin “Discount Rules for WooCommerce” as shown below,

plugin installation

Step 4: Install and activate the plugin.

The WooCommerce dynamic pricing plugin can also be installed manually in your store by downloading the Discount Rules for the WooCommerce plugin from the WordPress repository.

The above process explains the installation of the free version.

Try out the premium version of the WooCommerce Discount Rules plugin to get more features like user role-based discounts, BOGO deals, category-based discounts, and more.

How to Auto Apply discounts based on Specific Payment Method

Example 1: If Customers choose “Direct Bank Transfer” as a payment method, then apply a fixed discount of $50.

Go to, WooCommerce -> Woo Discount Rule -> Add New Rule

discount rule add new rule

Enter the rule name and select the discount type as “Cart Adjustment.”

enter rule name and cart adjustment

In the Filter section,

Choose “All Products” as the discount applies to all the store products.

filter section

In the Discount section, choose the discount type and discount value as “50.”

discount section

In the Rules section,

Set the Condition Type as Payment Method

Select the Payment Method as a Direct bank transfer

rules section

Cart Page workflow,

cart totals

Checkout page workflow,

checkout page workflow

The customer purchased the products by the direct bank transfer payment method, a discount of “$50” has been applied to the customer’s cart.

Example 2: Choose the Cash on Delivery payment method and enjoy Free Shipping.

Go to, WooCommerce -> Woo Discount Rule -> Add New Rule

discount rule add new rule

Enter the rule name and select the discount type as “Free Shipping.”

discount type as free shipping

In the Rules section,

Set the Condition Type as Payment Method with the payment method as Cash on delivery.

cash on delivery rules section

Checkout page workflow,

checkout page cash on delivery

The customer purchased the products by the payment method Cash on delivery, “Free shipping” has been applied to the customer’s cart.

Note: Setting up the payment method conditions in Woo Discount Rules under the Settings tab, ensure “Refresh order review in checkout” is enabled as “Yes.”

woocommerce settings

On the checkout page, we select a payment method; the discount will be applied by the chosen payment method.

As a result, selecting “Yes” in the checkbox next to “Refresh order review in checkout” will let you refresh the checkout, and discounts will be automatically applied when the rule condition is met.

Apart from this built-in payment method in WooCommerce, you can use a different payment method to configure discounts for your customers. On clicking the other payment methods option, you can find different payment methods in the WordPress plugin directory or on the WooCommerce extension page.

multiple payment methods

If you have installed multiple plugins for payment, you can choose and enable the required payment option to get activated, as shown below.

enable required payment method

Top WooCommerce plugins for payment gateway

Payment Gateway: You can set up a payment gateway to accept online payments at your WooCommerce store. This tool or service ensures that all interactions between you and your customers are reliable and easy.
Some of the Top payment gateways are:

  • Tripe.
  • PayPal Pro.
  • Square.
  • Amazon Pay.
  • Apple Pay.
  • Alipay.

The above top payment gateways aid you in providing various preferences to your customers. Additionally, it helps your WooCommerce store by improving customer convenience, rapid payment processing, and secure transactions.


As previously discussed in this blog, numerous payment options are available today. Different Payment Gateways, different transaction charges. Some take extra time to process, and some go through quicker than others. Adding a discount deal to a payment method in the WooCommerce store is a wise way to make a choice easy and attractive for the customers to use your preferred payment method.

Therefore, this article demonstrated WooCommerce’s multiple payment methods. We also looked at several instances for setting up payment method-based discounts at your WooCommerce store using Discount Rules for WooCommerce.

Do you have any questions on “How to add a discount based on payment method in WooCommerce”? Share your questions in the comment section.

What payment methods are available with WooCommerce?

Stripe is the payment gateway that comes with WooCommerce.
Customers can also pay with Apple Pay, Google Pay, and Alipay.

How do I add multiple payment methods in WooCommerce?

Once installing WooCommerce, you can enable multiple online and offline payment methods. Go to WooCommerce -> Settings -> Payments option to access the multiple payment methods.

Can I use multiple payment gateways on WooCommerce?

Yes, as a store owner of your WooCommerce store, you can integrate with multiple gateways.

Why should you offer different payment methods?

Providing different payment methods makes checkout easy for customers, whereas, over the other, they can choose some payment option to complete the purchase at your store quickly and easily.

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Supriya Rajamanickam

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