diff --git a/app/schemas/models/user.coffee b/app/schemas/models/user.coffee
index 015145768..1d6396ac0 100644
--- a/app/schemas/models/user.coffee
+++ b/app/schemas/models/user.coffee
@@ -278,6 +278,9 @@ _.extend UserSchema.properties,
     planID: { enum: ['basic'] }
     subscriptionID: { type: 'string' }
     token: { type: 'string' }
+    couponID: { type: 'string' }
+    discountID: { type: 'string' }
+    free: { type: ['boolean', 'string'], format: 'date-time' }
   }
 
 c.extendBasicProperties UserSchema, 'user'
diff --git a/server/payments/discount_handler.coffee b/server/payments/discount_handler.coffee
new file mode 100644
index 000000000..64e865c94
--- /dev/null
+++ b/server/payments/discount_handler.coffee
@@ -0,0 +1,48 @@
+# Not paired with a document in the DB, just handles coordinating between
+# the stripe property in the user with what's being stored in Stripe.
+
+Handler = require '../commons/Handler'
+config = require '../../server_config'
+stripe = require('stripe')(config.stripe.secretKey)
+
+class DiscountHandler extends Handler
+  logDiscountError: (req, msg) ->
+    console.warn "Discount Error: #{req.user.get('slug')} (#{req.user._id}): '#{msg}'"
+
+  discountUser: (req, user, done) ->
+    if (not user) or user.isAnonymous()
+      return done({res: 'User must not be anonymous.', code: 403})
+
+    couponID = req.body.stripe.couponID
+    if not couponID
+      @logDiscountError(req, 'Missing couponID.')
+      return done({res: 'Missing couponID.', code: 422})
+      
+    stripe.coupons.retrieve couponID, (err, coupon) =>
+      if (err)
+        return done({res: 'No coupon with id '+couponID, code: 404})
+        
+      if customerID = user.get('stripe')?.customerID
+        options = { coupon: coupon.id }
+        stripe.customers.update customerID, options, (err, customer) =>
+          if err
+            @logDiscountError(req, 'Error applying coupon to customer'+customerID)
+            return done({res: 'Error applying coupon to customer.', code: 500})
+          done()
+        
+      else
+        # couponID will be set on the user by the handler
+        done()
+
+  removeDiscountFromCustomer: (req, user, done) ->
+    customerID = user.get('stripe').customerID
+    return done() unless customerID
+    
+    stripe.customers.deleteDiscount customerID, (err, customer) =>
+      if err
+        console.log 'err?', err
+        @logDiscountError(req, 'Error removing coupon from customer ' + customerID)
+        return done({res: 'Error applying coupon to customer.', code: 500})
+      done()
+      
+module.exports = new DiscountHandler()
\ No newline at end of file
diff --git a/server/payments/payment_handler.coffee b/server/payments/payment_handler.coffee
index f2e4f2bd4..cc077994b 100644
--- a/server/payments/payment_handler.coffee
+++ b/server/payments/payment_handler.coffee
@@ -166,29 +166,34 @@ PaymentHandler = class PaymentHandler extends Handler
   handleStripePaymentPost: (req, res, timestamp, productID, token) ->
 
     # First, make sure we save the payment info as a Customer object, if we haven't already.
-    if not req.user.get('stripe')?.customerID
-      stripe.customers.create({
-        card: token
-        email: req.user.get('email')
-        metadata: {
-          id: req.user._id + ''
-          slug: req.user.get('slug')
-        }
-      }).then(((customer) =>
-        stripeInfo = _.cloneDeep(req.user.get('stripe') ? {})
-        stripeInfo.customerID = customer.id
-        req.user.set('stripe', stripeInfo)
-        req.user.save((err) =>
-          if err
-            @logPaymentError(req, 'Stripe customer id save db error. '+err)
-            return @sendDatabaseError(res, err)
+    if token
+      customerID = req.user.get('stripe')?.customerID
+      
+      if customerID
+        # old customer, new token. Save it.
+        stripe.customers.update customerID, { card: token }, (err, customer) =>
           @beginStripePayment(req, res, timestamp, productID)
-        )
-        ),
-        (err) =>
-          @logPaymentError(req, 'Stripe customer creation error. '+err)
-          return @sendDatabaseError(res, err)
-      )
+          
+      else
+        newCustomer = {
+          card: token
+          email: req.user.get('email')
+          metadata: { id: req.user._id + '', slug: req.user.get('slug') }
+        }
+        
+        stripe.customers.create newCustomer, (err, customer) =>
+          if err
+            @logPaymentError(req, 'Stripe customer creation error. '+err)
+            return @sendDatabaseError(res, err)
+          
+          stripeInfo = _.cloneDeep(req.user.get('stripe') ? {})
+          stripeInfo.customerID = customer.id
+          req.user.set('stripe', stripeInfo)
+          req.user.save (err) =>
+            if err
+              @logPaymentError(req, 'Stripe customer id save db error. '+err)
+              return @sendDatabaseError(res, err)
+            @beginStripePayment(req, res, timestamp, productID)
 
     else
       @beginStripePayment(req, res, timestamp, productID)
diff --git a/server/payments/subscription_handler.coffee b/server/payments/subscription_handler.coffee
index 231f059d4..f1d0531e5 100644
--- a/server/payments/subscription_handler.coffee
+++ b/server/payments/subscription_handler.coffee
@@ -4,6 +4,7 @@
 Handler = require '../commons/Handler'
 config = require '../../server_config'
 stripe = require('stripe')(config.stripe.secretKey)
+discountHandler = require './discount_handler'
 
 subscriptions = {
   basic: {
@@ -19,61 +20,52 @@ class SubscriptionHandler extends Handler
     if (not req.user) or req.user.isAnonymous()
       return done({res: 'You must be signed in to subscribe.', code: 403})
 
-    stripeToken = req.body.stripe?.token
-    extantCustomerID = user.get('stripe')?.customerID
-    if not (stripeToken or extantCustomerID)
+    token = req.body.stripe?.token
+    customerID = user.get('stripe')?.customerID
+    if not (token or customerID)
       @logSubscriptionError(req, 'Missing stripe token or customer ID.')
       return done({res: 'Missing stripe token or customer ID.', code: 422})
 
-    if stripeToken
-      stripe.customers.create({
-        card: stripeToken
-        email: req.user.get('email')
-        metadata: {
-          id: req.user._id + ''
-          slug: req.user.get('slug')
+    if token
+      if customerID
+        stripe.customers.update customerID, { card: token }, (err, customer) =>
+          @checkForExistingSubscription(req, user, customer, done)
+          
+      else
+        newCustomer = {
+          card: token
+          email: req.user.get('email')
+          metadata: { id: req.user._id + '', slug: req.user.get('slug') }
         }
-      }).then(((customer) =>
+
+        stripe.customers.create newCustomer, (err, customer) =>
+          if err
+            if err.type in ['StripeCardError', 'StripeInvalidRequestError']
+              return done({res: 'Card error', code: 402})
+            else
+              @logSubscriptionError(req, 'Stripe customer creation error. '+err)
+              return done({res: 'Database error.', code: 500})
+            
           stripeInfo = _.cloneDeep(req.user.get('stripe') ? {})
           stripeInfo.customerID = customer.id
           req.user.set('stripe', stripeInfo)
-          req.user.save((err) =>
+          req.user.save (err) =>
             if err
               @logSubscriptionError(req, 'Stripe customer id save db error. '+err)
               return done({res: 'Database error.', code: 500})
             @checkForExistingSubscription(req, user, customer, done)
-          )
-        ),
-      (err) =>
-        if err.type in ['StripeCardError', 'StripeInvalidRequestError']
-          done({res: 'Card error', code: 402})
-        else
-          @logSubscriptionError(req, 'Stripe customer creation error. '+err)
-          return done({res: 'Database error.', code: 500})
-      )
 
     else
-      stripe.customers.retrieve(extantCustomerID, (err, customer) =>
+      stripe.customers.retrieve(customerID, (err, customer) =>
         if err
           @logSubscriptionError(req, 'Stripe customer creation error. '+err)
           return done({res: 'Database error.', code: 500})
-        else if not customer
-          # TODO: what actually happens when you try to retrieve a customer and it DNE?
-          @logSubscriptionError(req, 'Stripe customer id is missing! '+err)
-          stripeInfo = _.cloneDeep(req.user.get('stripe') ? {})
-          delete stripeInfo.customerID
-          req.user.set('stripe', stripeInfo)
-          req.user.save (err) =>
-            if err
-              @logSubscriptionError(req, 'Stripe customer id delete db error. '+err)
-              return done({res: 'Database error.', code: 500})
-            @subscribeUser(req, done)
-        else
-          @checkForExistingSubscription(req, user, customer, done)
+        @checkForExistingSubscription(req, user, customer, done)
       )
 
 
   checkForExistingSubscription: (req, user, customer, done) ->
+    couponID = user.get('stripe')?.couponID
     if subscription = customer.subscriptions?.data?[0]
 
       if subscription.cancel_at_period_end
@@ -87,30 +79,34 @@ class SubscriptionHandler extends Handler
             return done({res: 'Database error.', code: 500})
 
           options = { plan: 'basic', trial_end: subscription.current_period_end }
+          options.coupon = couponID if couponID
           stripe.customers.update req.user.get('stripe').customerID, options, (err, customer) =>
             if err
               @logSubscriptionError(req, 'Stripe customer plan setting error. '+err)
               return done({res: 'Database error.', code: 500})
 
-            @updateUser(req, user, customer.subscriptions.data[0], false, done)
+            @updateUser(req, user, customer, false, done)
 
       else
         # can skip creating the subscription
-        return @updateUser(req, user, customer.subscriptions.data[0], false, done)
+        return @updateUser(req, user, customer, false, done)
 
     else
-      stripe.customers.update req.user.get('stripe').customerID, { plan: 'basic' }, (err, customer) =>
+      options = { plan: 'basic' }
+      options.coupon = couponID if couponID
+      stripe.customers.update req.user.get('stripe').customerID, options, (err, customer) =>
         if err
           @logSubscriptionError(req, 'Stripe customer plan setting error. '+err)
           return done({res: 'Database error.', code: 500})
 
-        @updateUser(req, user, customer.subscriptions.data[0], true, done)
+        @updateUser(req, user, customer, true, done)
 
-  updateUser: (req, user, subscription, increment, done) ->
+  updateUser: (req, user, customer, increment, done) ->
+    subscription = customer.subscriptions.data[0]
     stripeInfo = _.cloneDeep(user.get('stripe') ? {})
     stripeInfo.planID = 'basic'
     stripeInfo.subscriptionID = subscription.id
-    stripeInfo.customerID = subscription.customer
+    stripeInfo.customerID = customer.id
     req.body.stripe = stripeInfo # to make sure things work for admins, who are mad with power
     user.set('stripe', stripeInfo)
 
diff --git a/server/users/user_handler.coffee b/server/users/user_handler.coffee
index 083b91ab4..c413d93da 100644
--- a/server/users/user_handler.coffee
+++ b/server/users/user_handler.coffee
@@ -12,6 +12,7 @@ moment = require 'moment'
 LevelSession = require '../levels/sessions/LevelSession'
 LevelSessionHandler = require '../levels/sessions/level_session_handler'
 SubscriptionHandler = require '../payments/subscription_handler'
+DiscountHandler = require '../payments/discount_handler'
 EarnedAchievement = require '../achievements/EarnedAchievement'
 UserRemark = require './remarks/UserRemark'
 {isID} = require '../lib/utils'
@@ -123,6 +124,25 @@ UserHandler = class UserHandler extends Handler
           return callback(err) if err
           return callback(null, req, user)
         )
+
+    # Discount setting
+    (req, user, callback) ->
+      return callback(null, req, user) unless req.user?.isAdmin()
+      hasCoupon = user.get('stripe')?.couponID
+      wantsCoupon = req.body.stripe?.couponID
+
+      return callback(null, req, user) if hasCoupon is wantsCoupon
+      if wantsCoupon and (hasCoupon isnt wantsCoupon)
+        DiscountHandler.discountUser(req, user, (err) ->
+          return callback(err) if err
+          return callback(null, req, user)
+        )
+      else if hasCoupon and not wantsCoupon
+        DiscountHandler.removeDiscountFromCustomer(req, user, (err) ->
+          return callback(err) if err
+          return callback(null, req, user)
+        )
+
   ]
 
   getById: (req, res, id) ->
diff --git a/test/server/functional/discount_handler.spec.coffee b/test/server/functional/discount_handler.spec.coffee
new file mode 100644
index 000000000..909b97f41
--- /dev/null
+++ b/test/server/functional/discount_handler.spec.coffee
@@ -0,0 +1,114 @@
+
+config = require '../../../server_config'
+require '../common'
+
+# sample data that comes in through the webhook when you subscribe
+
+
+describe '/db/user, editing stripe.couponID property', ->
+
+  stripe = require('stripe')(config.stripe.secretKey)
+  userURL = getURL('/db/user')
+  webhookURL = getURL('/stripe/webhook')
+
+  it 'clears the db first', (done) ->
+    clearModels [User, Payment], (err) ->
+      throw err if err
+      done()
+
+  #- shared data between tests
+  joeData = null
+  firstSubscriptionID = null
+  
+  it 'does not work for non-admins', (done) ->
+    loginJoe (joe) ->
+      joeData = joe.toObject()
+      expect(joeData.stripe).toBeUndefined()
+      joeData.stripe = { couponID: '20pct' }
+      request.put {uri: userURL, json: joeData }, (err, res, body) ->
+        expect(res.statusCode).toBe(200) # fails silently
+        expect(res.body.stripe).toBeUndefined() # but still fails
+        done()
+        
+  it 'does not work with invalid coupons', (done) ->
+    loginAdmin (admin) ->
+      joeData.stripe = { couponID: 'DNE' }
+      request.put {uri: userURL, json: joeData }, (err, res, body) ->
+        expect(res.statusCode).toBe(404)
+        done()
+  
+  it 'sets the couponID on a user without an existing stripe object', (done) ->
+    joeData.stripe = { couponID: '20pct' }
+    request.put {uri: userURL, json: joeData }, (err, res, body) ->
+      joeData = body
+      expect(res.statusCode).toBe(200)
+      expect(body.stripe.couponID).toBe('20pct')
+      done()
+      
+  it 'just updates the couponID when it changes and there is no existing subscription', (done) ->
+    joeData.stripe.couponID = '500off'
+    request.put {uri: userURL, json: joeData }, (err, res, body) ->
+      expect(res.statusCode).toBe(200)
+      expect(body.stripe.couponID).toBe('500off')
+      done()
+
+  it 'removes the couponID from the user when the admin makes it so', (done) ->
+    delete joeData.stripe.couponID
+    request.put {uri: userURL, json: joeData }, (err, res, body) ->
+      joeData = body
+      expect(res.statusCode).toBe(200)
+      expect(body.stripe).toBeUndefined()
+      done()
+
+  it 'puts the coupon back', (done) ->
+    joeData.stripe = {couponID: '500off'}
+    request.put {uri: userURL, json: joeData }, (err, res, body) ->
+      expect(res.statusCode).toBe(200)
+      expect(body.stripe.couponID).toBe('500off')
+      done()
+
+  it 'applies a discount to the newly created customer when a plan is set', (done) ->
+    stripe.tokens.create {
+      card: { number: '4242424242424242', exp_month: 12, exp_year: 2020, cvc: '123' }
+    }, (err, token) ->
+      stripeTokenID = token.id
+      loginJoe (joe) ->
+        joeData.stripe.token = stripeTokenID
+        joeData.stripe.planID = 'basic'
+        request.put {uri: userURL, json: joeData }, (err, res, body) ->
+          joeData = body
+          expect(res.statusCode).toBe(200)
+          stripe.customers.retrieve joeData.stripe.customerID, (err, customer) ->
+            expect(customer.discount).toBeDefined()
+            expect(customer.discount.coupon.id).toBe('500off')
+            done()
+  
+          
+  it 'updates the discount on the customer when an admin changes the couponID', (done) ->
+    loginAdmin (admin) ->
+      joeData.stripe.couponID = '20pct'
+      request.put {uri: userURL, json: joeData }, (err, res, body) ->
+        expect(res.statusCode).toBe(200)
+        expect(body.stripe.couponID).toBe('20pct')
+        stripe.customers.retrieve joeData.stripe.customerID, (err, customer) ->
+          expect(customer.discount.coupon.id).toBe('20pct')
+          done()
+      
+  it 'removes discounts from the customer when an admin removes the couponID', (done) ->
+    delete joeData.stripe.couponID
+    request.put {uri: userURL, json: joeData }, (err, res, body) ->
+      expect(res.statusCode).toBe(200)
+      expect(body.stripe.couponID).toBeUndefined()
+      stripe.customers.retrieve joeData.stripe.customerID, (err, customer) ->
+        expect(customer.discount).toBe(null)
+        done()
+
+  it 'adds a discount to the customer when an admin adds the couponID', (done) ->
+    joeData.stripe.couponID = '20pct'
+    request.put {uri: userURL, json: joeData }, (err, res, body) ->
+      expect(res.statusCode).toBe(200)
+      expect(body.stripe.couponID).toBe('20pct')
+      stripe.customers.retrieve joeData.stripe.customerID, (err, customer) ->
+        expect(customer.discount.coupon.id).toBe('20pct')
+        done()
+        
diff --git a/test/server/functional/payment.spec.coffee b/test/server/functional/payment.spec.coffee
index 26cb4cb44..f8fb257cf 100644
--- a/test/server/functional/payment.spec.coffee
+++ b/test/server/functional/payment.spec.coffee
@@ -82,6 +82,7 @@ describe '/db/payment', ->
     joeID = null
     timestamp = new Date().getTime()
     stripeTokenID = null
+    joeData = null
 
     it 'clears the db first', (done) ->
       clearModels [User, Payment], (err) ->
@@ -131,6 +132,34 @@ describe '/db/payment', ->
             done()
           )
         )
+        
+    it 'allows a new charge on the existing customer', (done) ->
+      data = { productID: 'gems_5', stripe: { timestamp: new Date().getTime() } }
+      request.post {uri: paymentURL, json: data }, (err, res, body) ->
+        expect(res.statusCode).toBe 201
+        Payment.count {}, (err, count) ->
+          expect(count).toBe(2)
+          User.findById joeID, (err, user) ->
+            joeData = user.toObject()
+            expect(user.get('purchased').gems).toBe(10000)
+            done()
+            
+    it "updates the customer's card when you submit a new token", (done) ->
+      stripe.customers.retrieve joeData.stripe.customerID, (err, customer) ->
+        originalCustomerID = customer.id
+        originalCardID = customer.cards.data[0].id
+        stripe.tokens.create {
+            card: { number: '4242424242424242', exp_month: 12, exp_year: 2020, cvc: '123' }
+        }, (err, token) ->
+          data = { productID: 'gems_5', stripe: { timestamp: new Date().getTime(), token: token.id } }
+          request.post {uri: paymentURL, json: data }, (err, res, body) ->
+            expect(res.statusCode).toBe(201)
+            User.findById joeID, (err, user) ->
+              joeData = user.toObject()
+              expect(joeData.stripe.customerID).toBe(originalCustomerID)
+              stripe.customers.retrieve joeData.stripe.customerID, (err, customer) ->
+                expect(customer.cards.data[0].id).not.toBe(originalCardID)
+                done()
 
     it 'clears the db', (done) ->
       clearModels [User, Payment], (err) ->