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Our customers are able to use a Discount Coupon - we do not want to apply it to a particular - Category - our Clearance Category.

Can you tell me how?

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Welcome to Magento.SE!

This is quite easy to do. In your coupon rule's Conditions tab you will want to set up a rule like this:

enter image description here

This tells the rule NOT to apply if it ever finds 1 or more items in the cart where the category is your discount category. Make sure to fill in the proper category ID there.

Hope that helps! Cheers!

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