What Is a Payment Gateway Discount?
A payment gateway discount is a price reduction that applies automatically when a customer selects a specific payment method at checkout. For example, you could offer 5% off when someone pays via bank transfer instead of a credit card. The discount shows up on the order total without the customer needing to enter a coupon code.
Why Offer Payment Method Discounts?
There are three practical reasons to tie discounts to payment methods.
- Reduce processing fees. Credit card payments cost you 2-3% per transaction. Bank transfers and cash on delivery cost significantly less (or nothing). Offering a small discount for these methods can save you more than the discount costs.
- Incentivize preferred payment methods. If you want to push customers toward bank transfers, COD, or a specific gateway, a visible discount at checkout is the most effective nudge. No popups, no banners. Just a lower price on the payment they pick.
- Increase conversions. A discount shown at the moment of payment reduces hesitation. Customers who see an instant saving are more likely to complete checkout instead of abandoning their cart.
How to Set It Up with Murls Discounts
Murls Discounts is a free WooCommerce plugin that handles this out of the box. No code, no configuration files. Here is the setup process.
- Install the plugin. Go to your WordPress dashboard, navigate to Plugins > Add New, and search for "Murls Discounts." Click Install, then Activate. You can also download it from WordPress.org.
- Open the settings. Go to WooCommerce > Murls Discounts in your admin sidebar.
- Select a payment gateway. Pick the payment method you want to discount. The plugin detects every active gateway on your store automatically, including Stripe, PayPal, bank transfers, COD, and any third-party gateway.
- Set the discount type and amount. Choose between a percentage discount (e.g., 5%) or a fixed amount (e.g., $3 off). Enter the value.
- Optional: Scope by category or SKU. If you only want the discount to apply to certain product categories, select them. You can also exclude specific SKUs. Set a minimum order amount if needed.
- Optional: Schedule the discount. Set a start date and end date if you want the discount to run as a time-limited promotion. Leave these blank for an always-on discount.
- Save and test. Click Save, then open your store in a new browser tab. Add a product to your cart, go to checkout, and select the discounted payment method. You should see the discount applied to the order total instantly.
Tip: Murls Discounts works with both the Classic Checkout and the new WooCommerce Block Checkout. It also supports WooCommerce HPOS (High-Performance Order Storage). No compatibility issues to worry about.
Real-World Examples
Here are three common setups store owners use.
5% off for bank transfer payments. A furniture store with high average order values ($500+) offers 5% off when customers pay via direct bank transfer. The store saves 2.9% + $0.30 per transaction in Stripe fees, and the 5% discount still leaves them ahead on large orders. Net result: more profit per order and faster payment settlement.
$3 off for cash on delivery. A local food delivery store offers a flat $3 discount on COD orders. This encourages customers in areas with unreliable online payment infrastructure to place orders confidently. The store reduces chargebacks and failed payment retries.
2% off for Stripe payments. An electronics store negotiated a lower Stripe rate (1.5%) through Stripe's volume pricing. They pass part of the savings to customers as a 2% checkout discount, which increases their Stripe payment volume and keeps them in the lower fee tier.
Tips for Getting the Most Out of Payment Discounts
- Do the math first. Calculate your processing fee for each gateway. Only offer a discount that is smaller than the fee you save. A 5% discount to avoid a 2% fee loses you money.
- Use the minimum order amount. Small orders with percentage discounts can eat into your margin. Set a floor (e.g., $50 minimum) to keep things profitable.
- Keep the discount visible. Murls Discounts shows the discount as a line item on the checkout page. Customers see exactly what they are saving and why. This transparency builds trust.
- Test with a time-limited promotion first. Before making a payment discount permanent, run it for 2 weeks with a scheduled end date. Check your analytics dashboard in Murls Discounts to see the impact on order volume and payment method distribution.
- Combine with category scoping. If your margins vary by product category, only apply the discount to high-margin categories where you can afford it.
Frequently Asked Questions
Does the discount show on the checkout page before the customer pays?
Yes. As soon as the customer selects the discounted payment method, the discount appears as a line item on the order summary. The updated total is visible before they click the Place Order button.
Can I offer different discounts for different payment gateways?
Yes. Murls Discounts lets you create a separate discount rule for each payment gateway. You can offer 5% off bank transfers, $3 off COD, and 2% off Stripe all at the same time, each with its own conditions.
Will this work with my payment gateway?
If your payment gateway is active in WooCommerce, Murls Discounts supports it. This includes Stripe, PayPal, bank transfers, cash on delivery, Mollie, Razorpay, and any third-party WooCommerce payment plugin.
Is Murls Discounts free?
Yes. The core plugin is 100% free, hosted on WordPress.org, and licensed under GPL. There are no trial periods, no feature gates, and no credit card required. Premium add-ons are available for advanced features, but the free version covers everything described in this article.
Ready to set up payment gateway discounts?
Murls Discounts is free, lightweight, and works with every WooCommerce payment gateway. Live in under 5 minutes.