If you're running a Shopify store in markets where Cash on Delivery (COD) is popular—like India, the Middle East, Europe, or Latin America—you already know the challenge: COD orders have higher return rates, create cash flow issues, and increase operational costs. The solution? Incentivize customers to choose prepaid payment methods instead.
Shopify doesn't natively offer the ability to limit discounts based on payment methods. This guide shows you how to create prepaid-only discounts and hide COD when discount codes are applied using Payflow, which adds the conditional logic Shopify is missing—without complicated coding or post-purchase order editing.
The core principle is simple: create a discount code, then use Payflow to hide COD when that discount is applied.
Quick Setup Option: Download our ready-made Payflow template, import it into your store, adjust the discount percentage range if needed, and set the status to active. Done!
First, create your discount code in Shopify (Discounts → Create discount → "Discount code" → set the percentage, e.g., 10%).
Install the Payflow app and navigate to "Create customization"
Choose "Hide payment methods" (or "Hide shipping methods" if you set up COD as a shipping rate).
Note: Most merchants use COD as a payment method only. However, if you've set up COD as part of your shipping rate (e.g., "COD Shipping +$5"), choose "Hide shipping methods" instead.
Set up discount conditions to target your discount code by percentage range: Add condition "Discount percentage" → "Greater than or equals to" → 9, then add second condition (AND operator) "Discount percentage" → "Less than or equals to" → 11.
Note: Due to Shopify limitations, you cannot target discount codes by name. Instead, target by percentage range. For a 10% discount, use 9-11% range to ensure it's captured.
Select "Cash on Delivery (COD)" payment method to hide (you can select multiple payment methods if needed).
Save and test by applying your discount code at checkout to verify the selected payment methods or shipping methods disappear.
Encouraging prepaid orders makes business sense:
Unlike other apps that require order editing or post-purchase adjustments, Payflow offers:
Offering prepaid order discounts while managing COD strategically can help you increase prepaid orders by 20-40%, reduce return rates, improve cash flow, and lower operational costs.
Setup takes just a few minutes, and you can adjust your rules anytime based on what works best for your business.
Yes, this works with both manual discount codes and automatic discounts.
Yes, customers apply the discount code in the cart or at checkout before selecting their payment method. Once applied, COD will automatically disappear.
Yes, when setting up the customization in Payflow, you can select multiple payment methods to hide when the discount conditions are met. This is useful if you want to restrict several payment options when discounts are applied.
No, due to Shopify API limitations, you cannot directly target discount codes by their name (e.g., "ONLINE10"). Instead, you must target them by percentage range. For a 10% discount, use 9-11% range to ensure it captures the discount.
If you've set up COD as part of your shipping rate (e.g., "COD Shipping +$5"), choose "Hide shipping methods" instead of "Hide payment methods" when creating your Payflow customization. The rest of the setup remains the same.
Yes, if a customer removes the discount code at checkout, COD will become available again automatically. The rules are applied in real-time based on the current cart conditions.
For most payment methods including COD, Payflow works on all Shopify plans (Basic, Shopify, and Advanced). However, if you want to hide credit card payment methods and your store is based in USA or Canada, Shopify Plus is required. For stores in other countries, all plans are supported.
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