How to set up a WooCommerce payment gateway discount

Offer discounts when customers choose specific payment methods like PayPal, credit cards, or bank transfers. This feature encourages preferred payment options, reduces transaction costs, and improves checkout conversions.

💰 Real revenue impact: what you lose without this rule

Payment gateway-based discounts motivate customers to select faster or low-fee payment methods — helping you save on transaction costs while improving order completion rates.

How to use the payment gateway discount

Use this rule to automatically apply a discount when a customer selects a specific payment method — for example, a 3% discount for PayPal or $5 off for Direct Bank Transfer payments.

Benefits of a payment gateway discount

• Reduce payment processing costs
• Encourage faster or preferred payment methods
• Increase the successful checkout rate
• Reward customers for using low-fee gateways
• Automate discounts without coupon codes

How to configure — step guide

1. Go to dashboard → woocommerce → dynamic pricing → manage rules
2. Click Add New Rule
3. Under the discount type, choose payment gateway-based discount
4. In the checkout, select the payment method
5. Choose your desired gateway — e.g., PayPal, Stripe, or Direct Bank Transfer
6. Enter the discount type (percentage or fixed amount)
7. Add the discount value (e.g., 3    for 3% or $5    off)
8. Optionally set cart condition (like minimum order value $100   )
9. Enable the rule using the status toggle

10. Click save rule

    

11. Select the respective payment gateway to apply the discount

    

Real examples

Example 1

Offer 3% off when customers pay via PayPal to encourage secure online transactions.

Result: checkout completion rate increased by 12%, saving $300/month in transaction fees.

Example 2

Set a $5 discount for orders paid via Direct Bank Transfer to reduce credit card processing charges.

Result: 40% of customers switched to lower-cost payment options.

Expected outcome

Customers see the discount automatically applied when they select the eligible payment gateway at checkout.

Your store saves on transaction fees while improving customer satisfaction and conversion rates.

FAQs

1. Can I apply discounts to multiple payment gateways?

Yes, you can create separate rules for each payment method.

2. Can I also add surcharges instead of discounts?

Yes, by using the “Extra Fee” option available in other Dotstore plugins.

3. Will this discount appear before or after taxes?

You can control this under the plugin’s settings (before tax or after tax).

4. Can I restrict the discount to specific products or categories?

Yes, combine payment gateway conditions with product-level rules.