Choose and set up how customers pay in your WooCommerce shop. This guide covers the options most UK businesses use: card payments with Stripe, PayPal, bank transfer (BACS) and cash on delivery or collection. It also covers VAT, discount codes, and handling orders and refunds.
Before you start
- WooCommerce installed and your store address set to the UK (see Set up your online shop with WooCommerce).
- HTTPS working on your whole site. Card payment providers require it. It's free on Host Dada (see Activate free SSL and force HTTPS).
- Your business bank details, and logins for the Stripe or PayPal account you'll use (you can create these during setup).
Which payment methods should I offer?
| Method | Good for | Notes |
|---|---|---|
| Stripe | Debit and credit cards, Apple Pay and Google Pay | Money paid into your bank automatically. Per-transaction fees. |
| PayPal | Customers who prefer PayPal, plus Pay Later options | Many shoppers trust it. Per-transaction fees. |
| Direct bank transfer (BACS) | Trade customers, large orders | No fees, but you must check your bank and release orders by hand. |
| Cash on delivery | Local delivery, or paying on collection | You collect payment in person. |
Most shops offer one card option (Stripe, or WooCommerce's own WooPayments) plus PayPal. Offering too many methods can make checkout look cluttered.
All payment methods are managed under WooCommerce → Settings → Payments. The page lists recommended providers at the top and, further down, Take offline payments for bank transfer, cheque and cash on delivery.
Card payments with Stripe
- Install the Stripe extension. Go to Plugins → Add New Plugin, search for
WooCommerce Stripe, and install and activate the official Stripe payment gateway for WooCommerce (by WooCommerce). It may also be offered on the Payments page. - Connect your account. In WooCommerce → Settings → Payments, click Complete setup (or Manage) next to Stripe, then Create or connect an account. You'll go to Stripe to sign in or sign up, then return to WordPress.
- Check the connection. In Stripe's Account details, the payment, payout and webhook statuses should all show as enabled. Webhooks let Stripe tell your shop when a payment succeeds, so orders update automatically.
- Choose payment methods. Turn on cards and, if you want them, express checkout buttons such as Apple Pay and Google Pay.
- Test it. Use Stripe's test mode (or Create or connect a test account) and place an order with one of Stripe's test card numbers. Switch test mode off before you launch.
Full details: Stripe for WooCommerce documentation.
PayPal
- Install PayPal Payments. Search for
WooCommerce PayPal Paymentsunder Plugins → Add New Plugin, then install and activate it. This is PayPal's current integration; the older "PayPal Standard" isn't offered on new shops. - Connect to PayPal. Open the PayPal settings from WooCommerce → Settings → Payments and click Activate PayPal Payments. Choose your account type and features, sign in to PayPal and click Connect to PayPal.
- Use a business account. A free PayPal Business account unlocks card payments through PayPal, Pay Later messaging and better fraud tools.
- Test it. To test before going live, turn on Sandbox Mode in the advanced options and connect a PayPal sandbox account.
Full details: PayPal Payments documentation.
Direct bank transfer (BACS)
- Turn it on. In WooCommerce → Settings → Payments, find Direct bank transfer under Take offline payments, enable it and click Manage.
- Write clear instructions. Set the Title customers see (for example "Bank transfer"), and in Instructions explain what to do, such as "Please use your order number as the payment reference. We'll dispatch your order once payment clears."
- Add your account details. Under Account details, enter the account name, account number, bank name and sort code. Add IBAN and BIC/SWIFT only if you accept international transfers.
- Save changes. Your bank details now appear on the order confirmation page and email.
Cash on delivery or collection
- Turn it on. Under Take offline payments, enable Cash on delivery and click Manage.
- Restrict it. Use Enable for shipping methods to offer it only where it makes sense, for example only with local delivery or local pickup. Rename the Title to "Pay on collection" if that suits you better.
- Decide on virtual products. Leave Accept for virtual orders unticked unless you really want to take cash for services or vouchers.
Cash on delivery orders are set to Processing. Mark them Completed once you've been paid. (Check payments, for cheques, works the same way as bank transfer if you still accept them.)
VAT
Only set up tax if you're VAT registered. If you're not, leave taxes switched off.
- Enable taxes. In WooCommerce → Settings → General, tick Enable tax rates and calculations and save. A Tax tab appears.
- Choose how you enter prices. On the Tax tab, most UK shops choose Yes, I will enter prices inclusive of tax, and display prices including tax in the shop and basket.
- Add the standard rate. Click Standard rates, then Insert row. Enter country code
GB, rate20, tax nameVAT, tick Shipping if you charge VAT on delivery, and click Save changes. - Add reduced or zero rates under Reduced rate rates and Zero rate rates if you sell items such as children's clothing or books, then set each product's Tax class.
VAT rules for selling abroad (including to Northern Ireland and the EU) can be complex. Check GOV.UK VAT guidance or ask your accountant before selling internationally.
Discount codes
Go to Marketing → Coupons → Add coupon (coupons must be enabled under Settings → General). Enter the code customers will type, choose a Discount type (percentage, fixed basket or fixed product discount) and the Coupon amount. Use Usage restriction to set a minimum spend or limit it to certain products, and Usage limits to cap how many times it can be used. Set an expiry date, then Publish.
Orders and refunds
- See orders under WooCommerce → Orders. Processing means paid and ready to send; mark it Completed when dispatched and the customer gets an email.
- Refund an order by opening it and clicking Refund. Enter the amounts or quantities to refund. For Stripe and PayPal, the refund-via button sends the money back automatically. For bank transfer or cash, choose to refund manually and pay the customer yourself.
- Pending payment means the customer didn't finish paying. These cancel automatically after a while; don't send the goods.
Troubleshooting
Card payments are taken but orders stay "Pending payment"
The payment provider can't tell your site the payment succeeded. In the Stripe or PayPal settings, check the webhook or connection status shows as working, and that your site loads on https:// without errors. A security plugin or a site-wide password can also block these messages.
No payment methods appear at checkout
Check at least one method is enabled under Payments, that test mode isn't restricting it to administrators, and (for cash on delivery) that it's enabled for the shipping method the customer chose.
Apple Pay or Google Pay buttons don't show
They only appear on supported devices and browsers, over HTTPS, and when enabled in the Stripe settings. Check on an iPhone with Apple Pay set up, or Chrome with a saved card.
Prices show the wrong VAT amount
Check the Prices entered with tax setting matches how you typed your prices, and that your store address is in the UK. Clear the CDN cache afterwards.
Last reviewed: October 2026
