One of the common challenges store owners face is losing money to high payment gateway fees. Every time a customer pays through certain gateways like credit cards or PayPal, a small percentage of the sale goes toward transaction charges. Over time, these fees can eat into your profit.

A WooCommerce payment method discount is a great way to offer a small discount to customers who use low-cost payment methods and thus encourage them to choose those methods more frequently. Besides that, you are cutting down on the money that goes to the processing fees, payments are speeding up, and there are fewer Cash on Delivery (COD) orders, which, most probably, are delayed or cancelled.

The change is a minor change but the effect is major: customers are getting benefited for selecting the correct payment method, and you are developing a more efficient, less expensive way of completing the transaction.

Setting up a discount rule based on payment method in WooCommerce is really simple and can be done by either one of these two methods: The first method is by using a WooCommerce discount rules plugin that automatically does all your tasks, where you have to just manage everything from the backend with a few clicks, and the rest is all taken care of by the plugin.

The second way is basically through the manual route, which means that you add a discount-based rule to a WooCommerce payment gateway plugin by a custom code; this gives your store not only the full freedom but also the capability to control the checkout logic of your store.

Let’s dive into the details of both methods so that it is easy for you can decide which one is the best fit for your store!

Installing a WooCommerce Discount Rules Plugin is the easiest way to set up payment method–based discounts in WooCommerce. These plugins handle the entire process automatically, from detecting which payment method your customer chooses at checkout to applying the right discount rule you choose to set. With just a few clicks, you can easily configure the settings from your backend, define the discount percentage or amount, and let the plugin do the rest.

Let’s look at some of the best WooCommerce Discount Rules Plugins you could choose from!

Discount Rules for WooCommerce is a WooCommerce discount rules plugin, with the help of which you are able to create pricing rules that are very smart and those that are automatically applied on the checkout stage. Put simply, this WooCommerce discount rules plugin is a time-saving and effort-saving tool that does discounts at the checkout automatically, thus the need to manually enter coupons or change prices one by one is eliminated.

This plugin gives you full control over how and when discounts are applied. You can create WooCommerce bulk discounts, percentage-based offers, fixed amount deals, or even dynamic cart discounts depending on the customer’s purchase behavior.

For example, if you want to encourage bulk buying, you can set up a rule like “Buy 5 items and get 10% off” or “Spend ₹5000 and get ₹500 off”, and the discount will be automatically calculated once the condition is met.

You can also combine multiple discount conditions such as user roles, cart totals, product categories, customers’ shipping address or payment methods to create highly targeted WooCommerce discount strategies, all managed directly from your dashboard in just a few clicks.

Key Features of Discount Rules for WooCommerce:

• Advanced Dynamic Pricing Options: This plugin allows you to create flexible WooCommerce dynamic pricing and discounts for your store, from bulk purchase offers to cart-based percentage discounts. For example, you can set up “Buy 3 and get 20% off” or “Spend ₹3000 and save ₹300,” which apply automatically during checkout.
• BOGO and Bundle Discounts: You can create attractive “Buy One Get One Free” or “Buy 2 Get 1 at 50% Off” offers that automatically apply during checkout. Another way of using products is bundling them together such as “Buy 3 for ₹999” that will attract higher cart values.
• Conditional Discount Rules: With the help of this WooCommerce discount rules plugin, one can easily set up a personalized discount system which is based on product categories, cart totals, and even payment methods.
• Basic WooCommerce Bulk Discounts: Implement WooCommerce bulk discounts and display a customer volume-based pricing model. A great solution for wholesale or B2B stores. Quantity breaks allows you to do something like “Buy 10-20 items for $500 each and 21+ for $450 each.”
• Visual Discount Display on Product Pages: This plugin gives you the capability to showcase discount tables, money saved, or crossing out the old prices directly on the product page so that customers can instantly see how much they save.
• User-Friendly Backend Management: You can control all discount rules in a single neat WooCommerce dashboard without writing code or having a complicated setup. Simply specify your conditions, choose the discount type, and the plugin will do everything else.

Pricing: The WooCommerce Discount Rules plugin can be downloaded at no cost, and the price of the Pro version starts at $59/year for a single-site license. The Pro version includes features such as BOGO deals, dynamic pricing conditions, and visual discount displays.

Need help setting up the above plugin or building a WooCommerce discount rules plugin from scratch? Then you should hire WooCommerce developers to configure it perfectly and tailor it to your store’s needs.

The Dynamic Pricing per Payment Method plugin lets you apply custom fees or discounts based on the payment gateway your customers select during checkout. Think of it as your smart payment manager that helps you balance transaction costs or encourage specific payment options without needing extra tools or code. If you’ve ever wanted a simple way to do WooCommerce add fee to payment method, this plugin gives you that flexibility right from your dashboard.

That’s an instance where, to encourage the usage of low-fee methods, a person can be given a 5% discount if he/she pays through a bank transfer. Or you may put a slight 2% handling fee on a PayPal account to balance the transaction charges. Anybody wishing to buy can do this entirely on their own, directly at the checkout, a situation that is completely transparent both for you and your customers.

Its adaptability is what differentiates it from the rest. If the idea is to have a flat amount, a percentage-based fee, or a conditional rule like granting discounts only for orders that exceed ₹1000, you are able to adjust each and every thing right from the control panel to the smallest detail.

Key Features of the above plugin:

• Add Discounts or Fees by Payment Method: Create custom charges or offers for each WooCommerce payment method you enable. For example, give $50 off for Direct Bank Transfer or charge $30 extra for Cash on Delivery. This makes it easy to handle WooCommerce add fee to payment method logic without any coding.
• Percentage or Fixed Value Adjustments: Choose whether you want the amount to be a fixed fee ($50) or a percentage (5%) of the total order value, giving you full control over your pricing strategy.
• Set Conditional Rules Based on Cart Total: This WooCommerce discount rule plugin allows you to apply fees or discounts only when the order total meets your conditions. For instance, you could offer a discount only on purchases above $1000.
• Include or Exclude Tax Options: Through this plugin, you can decide whether the added fees or discounts should include or exclude tax values. For example, if you add a $50 fee for Cash on Delivery, you can choose whether that fee itself should be taxed or not, helping you keep your checkout totals accurate and compliant with your store’s tax setup.
• Customize Frontend Display Messages: You can show clear notes during checkout like “Save 5% when paying via Bank Transfer” or “A small fee applies for Cash on Delivery” so customers always know why totals change.

Pricing: The YITH Dynamic Pricing per Payment Method plugin is a premium one which starts at $79.99/ year.

ELEX WooCommerce Discount per Payment Method is another WooCommerce discount rules plugin that helps you offer exclusive discounts based on how customers choose to pay at checkout.

Sometimes you may prefer digital payments instead of Cash on Delivery. With this plugin, you can easily encourage that by creating offers like “Get 5% off when you pay with PayPal” or “Save $10 when using Stripe.”

This WooCommerce discount rules plugin also makes it simple to set up discount rules from your WooCommerce dashboard. What you need to do is simple. Just selecting the payment method, assigning the discount value is enough to complete the work. It is possible to customize the message showing on the checkout page to attract the customer as well like “By an online payment, you have just saved $15!”

Also, the best part? You can add discounts to multiple payment methods and activate or deactivate them anytime based on your store’s promotions.

Whether you want to promote online payments, reduce COD orders, or run seasonal payment-based offers, this plugin makes it easy to set everything up in a few clicks.

Key Features of ELEX WooCommerce Discount Per Payment Method: 

• Behavior-Driven Discounts: Through this WooCommerce discount rules plugin, you can easily guide your customers to choose the payment methods that work best for you. For example, give a small reward to those who pay through PayPal or a credit card instead of cash on delivery. 
• Custom Checkout Labels: Make your discounts more visible by adding clear labels like “Instant 5% Card Discount” or “Digital Payment Offer” on the checkout page.
• Multiple Payment Method Setup: This plugin allows you to set up different discounts for each payment option in your store. For instance, offer 10% off for PayPal users, 5% for credit cards, and none for COD.
• On/Off Discount Control: Without any limits, you are able to switch the discount off and on multiple times without the necessity of changing or resetting the discount options. This adaptability gives you the opportunity to organize a momentary deal, a weekend offer, or a special promotion at any time.

Pricing: The ELEX WooCommerce Discount Per Payment Method plugin is free and can be downloaded from WordPress.org.

The Payment Method Based Fee & Discounts for WooCommerce lets you create discount rules for your store’s payment gateways and their methods, based on what your customers choose. 

For example, if someone pays using PayPal, you can add a small 3% fee to cover transaction costs. Or if they use a direct bank transfer, you can give them a $5 discount to encourage that option and save on processing fees.

Another method is to add an additional $2 to a Cash on Delivery transaction in order to cover the courier handling costs or simply to discourage COD orders. Conversely, you may give a 2% discount to cardholders so as to expedite cashless transactions.

Moreover, you have the liberty to determine whether the amounts are fixed or percentage-based, set both minimum and maximum limits so that nothing is excessive, and even personalize the discount or fee labels that are visible during checkout.

On the whole, it is a pretty straightforward and highly efficient method to safeguard your margins and facilitate a checkout process that is more pleasant and transparent for your customers.

Key Features of the above plugin:

• Create adaptable fixed or percentage-based charges: Fees or discounts may be applied as a fixed value or as a percentage of the total order. By way of example, you could impose a flat $3 fee for Cash on Delivery or a 2% discount for the use of credit card.
• Set the limits for your changes in terms of money: By having boundaries in place for each addition or deduction, your prices will stay reasonable. Therefore, a 5% PayPal fee may be limited to $15 no matter how much the total value of the cart is.
• Recover transaction costs automatically: Some gateways charge extra processing fees, like PayPal’s 3% transaction charge. This WooCommerce discount rules plugin lets you pass that cost to customers automatically, helping you protect your profit margins.
• Customize taxable status and checkout labels: You decide whether fees should be taxable, and you can rename them on the checkout page for clarity. Instead of generic text like “Extra Fee,” use labels like “COD Handling Charge” or “Stripe Discount.”

Pricing: This plugin is a premium one and starts at $49/year, while you can also choose the two-year plan which starts at $78.40/year.

If you want to keep your WooCommerce efficient without adding extra plugins, you can still introduce discounts for certain WooCommerce payment method or payment gateway by simply inserting a code snippet.

This solution is perfect for you if you are able to insert a few lines of code and have more control over how the discount rules for WooCommerce are implemented in your store without depending on third-party tools.

If you want to add discount rules for WooCommerce payment gateways in your store, first get to know the process as follows:

Head over to Appearance → Theme File Editor→ functions.php (not a good idea for beginners) or, if you want to be a bit more safe, you can use the Code Snippets plugin (recommended) and put the following code there.

This is done to give a small discount when the selected WooCommerce payment gateway (like ‘PayPal’ or ‘COD’, or ‘Stripe’) that matches your ​‍​‌‍​‍‌​‍​‌‍​‍‌condition:

Adjust the gateway IDs and rates according to the WooCommerce payment gateways you use. For instance, if you are using a custom wallet or local bank transfer option, just replace the default gateway IDs (like cod or PayPal) with your custom gateway’s ID. This ID can be revealed by you if you look at the source code of your Checkout page while hovering over the payment method name. Or you could also confirm it with the developer who implemented it.

Moreover, one may vary the discount rate from 0.05 to 0.10 in order to determine the extent to which each payment mode will be discounted.

After making the adjustments save the file and test the checkout page with each payment method in WooCommerce to verify if the discount is being applied or removed ​‍​‌‍​‍‌​‍​‌‍​‍‌correctly.

Reload your checkout page to confirm that your selected WooCommerce payment method stays active and the discount updates automatically.

One of the easiest, yet highly efficient, ways to cut down on WooCommerce transaction fees is to set up a payment method discount that also serves as a way to promote the use of your preferred payment options. The decision between a plugin-based setup and a custom-coded solution is basically a matter of how much control, flexibility, and automation you desire for your store.

A fast, easy and powerful solution of Method 1: Using a WooCommerce Discount Rules Plugin is probably what you need the most. Among these, Discount Rules for WooCommerce (by Flycart) can be considered as the most complete and customer-friendly plugin. It facilitates you to generate the discounts depending on a number of conditions which may be payment methods, user roles, or cart totals, etc. This can be done through an understandable dashboard without the need to write a single line of code.

In case you are determined to keep your store as simple as possible, with minimal plugin dependency and want to have complete control over your checkout logic, Method 2: Adding a Custom Code Snippet would be a wonderful choice. It directly provides you with the flexibility to precisely adjust how discounts are granted to each payment method and therefore, guarantee a more efficient setup in terms of performance.