thread Re: Loyalty charging customers full amount in Customer Engagement

Loyalty charging customers full amount

Rhs — Sun, 21 Sep 2025 11:14:11 GMT

I've been getting constant complaints from customers that after we apply the loyalty points to redeem a discount, the discount it's applied to the sales ticket/receipt but not to the transaction amount shown in their bank statement/transaction. Anyone else having the same issue? Is this a preauthorization standard practice that customers abuse or a real transaction issue?

Re: Loyalty charging customers full amount

londontea — Fri, 18 Mar 2022 00:40:30 GMT

I haven't had any complaints from customers, and I usually have about 30 loyalty transactions per day. Based on the example you shared it could be standard pre-authorizations that coincidentally match the original sale, though I'm hesitant to believe that such a coincidence could happen so frequently.

Have all of these complaints come from customers whose subtotal was less than $1? If so then I think I have an idea of what's happening: Square usually charges the subtotal to the card, but since their minimum charge is $1 they could be charging the original sale amount as a workaround. I would presume that the pre-authorization would later be adjusted to the actual amount, though if that's not the case then there's definitely a bug.

Re: Loyalty charging customers full amount

Rhs — Fri, 18 Mar 2022 01:02:32 GMT

Regardless of the "subtotal" amount, if the merchant it's charging the customer an amount, that is what it should be specially taking in consideration that when I called support, the only one department that can "supposedly" answer this is the loyalty team, but couldn't. I can see this happening in restaurants where an unspecific amount (tip) can be added to the final amount after a pre-authorization it's paid for main charges, still the hold will be the amount from first charge. I am just looking for clarification if this is a normal practice with loyalty so I can inform the customers to avoid call backs.

Re: Loyalty charging customers full amount

thegrapevine — Mon, 16 Oct 2023 21:44:08 GMT

I am having the same issue! Any fixes yet?