Stripe Coupon vs. Promotion Code: What’s the Difference?

In Stripe, a coupon and a promotion code are two halves of the same discount — and people mix them up constantly.

  • A coupon is the discount rule — for example, “20% off” or “$10 off.” It defines the amount and how long it applies.
  • A promotion code is the customer-facing code attached to a coupon — the thing a member actually types at checkout, like LAUNCH20.

In short: the coupon is the discount; the promotion code is how a customer redeems it.

How they work together

You create a coupon first, then create one or more promotion codes that point to it. That separation is useful: a single “20% off” coupon can power several codes — one for a launch, one for a partner, one for a newsletter — and you can track or disable each independently.

Discounts can be fixed (a set amount) or percentage based, and one-time or recurring (applied once, or to every renewal). That last choice matters for memberships: a recurring discount keeps applying every billing cycle.

How Members Only approaches it

The Members Only Stripe Checkout block supports Stripe Coupons. You create the coupon and a promotion code in your Stripe dashboard, then enable coupon support on the checkout button or link in WordPress. Members type the promotion code during checkout, and Stripe applies the discount automatically — fixed or percentage, one-time or recurring.

Next step

See the Blocks documentation for enabling coupons on the Stripe Checkout block.

Related terms: What Is Hosted Checkout?, What Is Recurring Billing?