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.
How to Set Up Prepaid Discounts with Payflow
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!
Step-by-Step Setup:
First, create your discount code in Shopify (Discounts → Create discount → "Discount code" → set the percentage, e.g., 10%).
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Install the Payflow app and navigate to "Create customization"
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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.
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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.
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Select "Cash on Delivery (COD)" payment method to hide (you can select multiple payment methods if needed).
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Save and test by applying your discount code at checkout to verify the selected payment methods or shipping methods disappear.
Why Offer Prepaid Order Discounts?
Encouraging prepaid orders makes business sense:
- Reduce return rates: COD orders are 3-5x more likely to be returned or refused at delivery.
- Improve cash flow: Get paid immediately instead of waiting for delivery completion.
- Lower operational costs: Save on COD handling fees, failed delivery attempts, and reverse logistics.
- Decrease fraud risk: Prepaid orders eliminate fake orders and intentional non-acceptance.
Why Use Payflow?
Unlike other apps that require order editing or post-purchase adjustments, Payflow offers:
- Real-time conditional logic - Instant hide/show based on any condition
- No order editing - Everything happens during checkout, not after
- Unlimited conditions - Combine cart value, products, tags, location, shipping, payment methods
- Works on all plans - Including Shopify Basic
- Visual rules builder - No coding required, easy to set up
- 24/7 live chat support - Friendly customer help whenever you need it 🤗
Conclusion
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.
