Differences Between Custom Discounts, Membership Discounts and Promotions

Modified on Tue, 27 Jan at 10:33 AM

This article explores the core differences between custom discounts, membership discounts, and promotions. We break down how each type is configured, their behavior during online and in-store checkout, and how they impact staff commission. By the end of this guide, you will understand the priority hierarchy of these discounts and how to manage them effectively.

Things to know:

You can stack all three discount types on a single item only if the Promotion is set to "Auto-apply." If a Promotion is set to "Manual," you must choose between the Promotion or a Custom Discount; you cannot apply both to the same item.
If a promotion is applied to an Entire Ticket, the "Add Discount" hyperlink under individual line items will be disabled. To apply a discount in this scenario, use the main Discount dropdown menu.
Commission Overrides:
Memberships & Promotions: Settings are configured within their specific templates. You can choose to calculate commission Pre-discount (original price) or Post-discount (discounted price). These template settings override your global business settings.
Custom Discounts: These always follow your global business settings found under Business Setup > Settings. Learn more here.

The following table outlines the differences and similarities between custom discounts, membership discounts, and promotions:

Features	Custom Discounts	Membership Discounts	Promotions
Definition	one-off price adjustments entered directly at the POS	Recurring, automated savings linked to a client’s membership status	Marketing-driven incentives for specific campaigns or seasonal sales
Setup Level	No pre-configuration; applied manually in POS.	Configured in the membership template at the parent or child account level. Learn more here.	Configured in the promotion template at the parent or child level. Learn more here.
Application Method	These discounts can only be manually applied in-store. Staff must input the amount or percentage on POS tickets. Learn more here.	Applied instantly when an eligible item is added to a member's cart online or POS ticket in-store	Can be set to trigger automatically or require a manual selection/code. Lean more here.
Sales Channels	In-Store Only: These cannot be used by customers online.	In-Store & Online: Valid for bookings and purchases in-store and online	In-Store & Online: Valid for bookings and purchases in-store and online
Calculation Logic	Dollar ($) amount or Percentage (%) only.	Dollar ($) amount or Percentage (%) only. Learn more here.	Dollar ($), Percentage (%), or a Set Fixed Price. Learn more here.
Application Scope	Specific line items or all items on a ticket	Eligible classes, appointments, or products.	All items, selected items, or the Entire Ticket.
Taxes & Fees	Cannot be applied to any taxes or service fees.	Cannot be applied to any taxes or service fees.	Cannot be applied to any taxes or service fees.
Naming & Identity	Cannot be named; shows as a generic "Discount" on POS tickets.	Customizable name (e.g., "Platinum Member 10% Off").	Customizable name (e.g., "Holiday Promotional Sale"). In POS, promotions are displayed in the following format: [Promo Code]: [Promotion Name]. For example, a promotion named "New Year Sale 15% Off" with the code NEWYEAR15 will appear as: NEWYEAR15: New Year Sale 15% Off. If the promo code and promotion name are identical, only the code will be displayed. Example: NEWYEAR15.
Commission Rules	Follows company settings under Business Setup > Settings. Learn more here.	Overrides company settings: Rule is chosen within the membership template. Learn more here.	Overrides company settings: Rule is chosen within the Promotion Template. Learn more here.
Reporting Availability	There is currently no specific report available to track custom discounts usage only.	There is currently no specific report available to track the usage of membership discounts.	Details about promotions used on closed tickets are available in the Promotions Report. Learn more here.

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