Create Coupon Codes in Stripe | Guide

TL;DR

Create coupons in Stripe via the API with stripe.coupons.create() specifying percent_off or amount_off, duration (once, repeating, or forever), and optional limits. Then create promotion codes with stripe.promotionCodes.create() to give customers a shareable code like SAVE20. Apply coupons to Checkout Sessions, subscriptions, or invoices.

Coupons and Promotion Codes in Stripe

Stripe uses a two-layer discount system. A Coupon defines the discount logic (20% off, $10 off, etc.) and duration. A Promotion Code wraps a coupon in a customer-facing code string (like SAVE20) that customers enter at checkout. You can create coupons without promotion codes for internal use (applied directly via API), or create promotion codes for self-service discounts. Both work with Checkout Sessions, subscriptions, and invoices.

Prerequisites

A Stripe account with API keys from Dashboard → Developers → API keys
Node.js 18 or newer installed
The stripe npm package installed (npm install stripe)
A product or Checkout Session to apply the coupon to

Step-by-step guide

Create a percentage coupon

Create a coupon that gives a percentage discount. Set percent_off and duration. Duration options: 'once' (single use), 'repeating' (N months), or 'forever' (applies indefinitely for subscriptions).

typescript

1const stripe = require('stripe')(process.env.STRIPE_SECRET_KEY);
2
3const coupon = await stripe.coupons.create({
4  percent_off: 20,
5  duration: 'once',
6  name: '20% Off First Purchase',
7  max_redemptions: 100, // optional: limit total uses
8  redeem_by: Math.floor(new Date('2026-12-31').getTime() / 1000), // optional: expiry
9});
10
11console.log('Coupon ID:', coupon.id);

Expected result: A coupon is created that gives 20% off for one payment, limited to 100 uses.

Create a fixed-amount coupon

Use amount_off instead of percent_off for a fixed discount. You must also specify the currency.

typescript

1const coupon = await stripe.coupons.create({
2  amount_off: 1000, // $10.00 in cents
3  currency: 'usd',
4  duration: 'repeating',
5  duration_in_months: 3, // applies for 3 months of a subscription
6  name: '$10 Off for 3 Months',
7});

Expected result: A coupon is created that gives $10 off each month for 3 months.

Create a promotion code

Wrap the coupon in a promotion code that customers can enter. The code string is what customers type at checkout.

typescript

1const promoCode = await stripe.promotionCodes.create({
2  coupon: coupon.id,
3  code: 'SAVE20',
4  max_redemptions: 50,
5  restrictions: {
6    first_time_transaction: true, // only for new customers
7    minimum_amount: 5000, // minimum $50.00 order
8    minimum_amount_currency: 'usd',
9  },
10});
11
12console.log('Promo code:', promoCode.code);

Expected result: A promotion code SAVE20 is created that applies the 20% off coupon with restrictions.

Apply a coupon to a Checkout Session

Enable promotion codes in your Checkout Session so customers can enter the code, or apply a coupon directly without requiring customer input.

typescript

1// Option 1: Let customers enter promo codes at checkout
2const session = await stripe.checkout.sessions.create({
3  mode: 'payment',
4  allow_promotion_codes: true, // shows promo code input field
5  line_items: [{
6    price_data: {
7      currency: 'usd',
8      product_data: { name: 'Annual Plan' },
9      unit_amount: 9900, // $99.00
10    },
11    quantity: 1,
12  }],
13  success_url: 'https://yoursite.com/success',
14  cancel_url: 'https://yoursite.com/cancel',
15});
16
17// Option 2: Apply coupon directly (no code needed from customer)
18const session2 = await stripe.checkout.sessions.create({
19  mode: 'payment',
20  discounts: [{ coupon: coupon.id }],
21  line_items: [{ /* ... */ }],
22  success_url: 'https://yoursite.com/success',
23  cancel_url: 'https://yoursite.com/cancel',
24});

Expected result: Option 1: Checkout page shows a promo code input field. Option 2: Discount is pre-applied.

Complete working example

coupon-system.js

1const express = require('express');
2const stripe = require('stripe')(process.env.STRIPE_SECRET_KEY);
3
4const app = express();
5app.use(express.json());
6
7// Create a coupon
8app.post('/api/coupons', async (req, res) => {
9  try {
10    const { percent_off, amount_off, currency, duration, duration_in_months, name, max_redemptions } = req.body;
11
12    const params = { duration, name };
13    if (percent_off) params.percent_off = percent_off;
14    if (amount_off) {
15      params.amount_off = amount_off;
16      params.currency = currency || 'usd';
17    }
18    if (duration === 'repeating') params.duration_in_months = duration_in_months;
19    if (max_redemptions) params.max_redemptions = max_redemptions;
20
21    const coupon = await stripe.coupons.create(params);
22    res.json({ id: coupon.id, name: coupon.name });
23  } catch (err) {
24    res.status(500).json({ error: err.message });
25  }
26});
27
28// Create a promotion code for a coupon
29app.post('/api/promo-codes', async (req, res) => {
30  try {
31    const { couponId, code, max_redemptions, first_time_only } = req.body;
32
33    const params = { coupon: couponId };
34    if (code) params.code = code;
35    if (max_redemptions) params.max_redemptions = max_redemptions;
36    if (first_time_only) {
37      params.restrictions = { first_time_transaction: true };
38    }
39
40    const promoCode = await stripe.promotionCodes.create(params);
41    res.json({ id: promoCode.id, code: promoCode.code });
42  } catch (err) {
43    res.status(500).json({ error: err.message });
44  }
45});
46
47// Create checkout with promo code support
48app.post('/api/checkout', async (req, res) => {
49  try {
50    const session = await stripe.checkout.sessions.create({
51      mode: 'payment',
52      allow_promotion_codes: true,
53      line_items: [{
54        price_data: {
55          currency: 'usd',
56          product_data: { name: 'Pro Plan' },
57          unit_amount: 4900,
58        },
59        quantity: 1,
60      }],
61      success_url: `${req.headers.origin}/success`,
62      cancel_url: `${req.headers.origin}/cancel`,
63    });
64
65    res.json({ url: session.url });
66  } catch (err) {
67    res.status(500).json({ error: err.message });
68  }
69});
70
71const PORT = process.env.PORT || 3000;
72app.listen(PORT, () => console.log(`Server on port ${PORT}`));

Common mistakes when creating coupon codes in Stripe

Why it's a problem: Confusing coupons with promotion codes

How to avoid: A coupon is the discount logic (20% off). A promotion code is a customer-facing code string (SAVE20) linked to a coupon. Create the coupon first, then optionally create promotion codes for it.

Why it's a problem: Using both allow_promotion_codes and discounts in the same Checkout Session

How to avoid: These are mutually exclusive. Use allow_promotion_codes to let customers enter codes, OR use discounts to pre-apply a coupon. You cannot use both.

Why it's a problem: Setting amount_off without specifying currency

How to avoid: Fixed-amount coupons require a currency field. Without it, the API returns an error.

Why it's a problem: Forgetting to set max_redemptions or redeem_by limits

How to avoid: Without limits, coupons can be used unlimited times forever. Always set max_redemptions and/or redeem_by for marketing campaigns.

Best practices

Create coupons with descriptive names (e.g., '20% Off First Purchase Q1 2026') for easy Dashboard identification
Set max_redemptions and redeem_by dates on coupons to prevent unlimited usage
Use promotion codes for customer-facing discounts and direct coupon application for internal/automatic discounts
Test coupons with card 4242424242424242 in test mode to verify the discount is applied correctly
Use first_time_transaction restriction on promotion codes to limit discounts to new customers
Track coupon performance in Dashboard → Coupons to see redemption counts and revenue impact
Delete or deactivate expired coupons to keep your catalog clean

Still stuck?

Copy one of these prompts to get a personalized, step-by-step explanation.

ChatGPT Prompt

Write a Node.js Express API for Stripe coupon management. Include endpoints to create percentage and fixed-amount coupons, create promotion codes with restrictions, and create Checkout Sessions with allow_promotion_codes enabled. Use the stripe npm package.

Stripe Prompt

Add a discount system to my app using Stripe. Create coupons with percentage or fixed discounts, generate shareable promo codes with first-time customer restrictions, and integrate them into Checkout Sessions. Include an admin endpoint to list all active coupons.

Frequently asked questions

What is the difference between a coupon and a promotion code?

A coupon defines the discount rules (percentage, amount, duration). A promotion code is a shareable string (like SAVE20) linked to a coupon that customers can enter at checkout. You need a coupon first, then optionally create promotion codes.

Can I apply multiple coupons to one payment?

No. Stripe allows only one coupon per Checkout Session, subscription, or invoice. For stacking discounts, create a single coupon that represents the combined discount.

Can I edit a coupon after creating it?

You can update the name and metadata of a coupon, but not the discount amount, duration, or other terms. To change the discount, create a new coupon.

How do coupons work with subscriptions?

For subscriptions, 'once' applies the discount to the first invoice only, 'repeating' applies for a set number of months, and 'forever' applies to every invoice for the life of the subscription.

Can customers use a promotion code more than once?

By default, each customer can use a promotion code once. Set max_redemptions on the promotion code to limit total uses across all customers.

What if I need a complex discount system with tiered pricing and referral codes?

For advanced discount logic like volume-based pricing, referral programs, and multi-tier coupon systems, the RapidDev team can help design and implement a custom solution on top of Stripe's coupon API.

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How to create coupon codes in Stripe

What you'll learn

What you'll learn

Coupons and Promotion Codes in Stripe

Prerequisites

Step-by-step guide

Create a percentage coupon

Create a percentage coupon

Create a fixed-amount coupon

Create a fixed-amount coupon

Create a promotion code

Create a promotion code

Apply a coupon to a Checkout Session

Apply a coupon to a Checkout Session

Complete working example

Common mistakes when creating coupon codes in Stripe

Best practices

Still stuck?

Frequently asked questions

Talk to an Expert

Need help with your project?

We put the rapid in RapidDev

How to create coupon codes in Stripe

What you'll learn

Coupons and Promotion Codes in Stripe

Prerequisites

Step-by-step guide

Create a percentage coupon

Create a percentage coupon

Create a fixed-amount coupon

Create a fixed-amount coupon

Create a promotion code

Create a promotion code

Apply a coupon to a Checkout Session

Apply a coupon to a Checkout Session

Complete working example

Common mistakes when creating coupon codes in Stripe

Best practices

Still stuck?

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How to Create a Stripe Customer Programmatically

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Frequently asked questions

Talk to an Expert

Need help with your project?

We put the rapid in RapidDev