The Payment Method Pricing is a Magento extension that allows you to set prices based on the type of
payment method that the client uses. For example, if the user wants to pay with a Wire Transfer, there
would be no cost to you so you can sell the product at a lower price. Conversely, if the user wants to
pay with a credit card or PayPal, you would incur a fee, so you may want to adjust the pricing for that product.
This extension is great for individuals selling products with a small profit margin. For example,
someone in the precious metals industry faces competitive prices. Customers looking to purchase silver
want to pay market value for it, thereby restricting the product's sale price. This makes any decreasing
any fees associated with the purchase so important. For example, a customer purchases $1000 for a
silver bar, and your margin is $30. However, merchant processing fees amount to $30 as well, therefore
eliminating any profit.
With our extension, you can set the price of your product based on the customer's payment method.
The first step of this process is to create payment groups. You could set up a debit card group and a
offline group. The debit card group would include all transactions with Paypal, Authorize.net,
Stripe, anything that includes accepting payment with a debit / credit card. Next, in the offline
payment group, would include transactions such as wire transfers and checks. These payment groups
are using during the checkout process.
These groups are necessary to alter the price depending on the payment group selected. Checks and wire
transfers don't have any fees, allowing you to offer a price of $1000. If the customer chooses to pay
with a debit card, you have to charge $1100, in order to pay the merchant fees. In summary, the payment
groups allow you to change the product's price depending on the payment method, allowing you to still make a profit.
In addition, tiered pricing is a feature included with this extension. It's effective for you to offer 1 silver
bar for $1000 and 2 silver bars for $1800. It helps you attract more business with better deals the more the
The Customer's Process
When a customer is looking on the product page for your silver bar, he will see your cheapest pricing and payment
method table. On the product page, it will automatically display the cheapest price of the product, $1150.
Additionally, the customer will see the tiered pricing table showing:
|1 Silver Bar
|2 Silver Bar
The customer chooses the product quantity and continues to the checkout page. This is the stage when customers will choose their payment group (debit card group or the offline group). Depending on the payment method, the price will be adjusted.