thread Re: Do loyalty points get taken away when a refund is initiated? in Customer Engagement

Do loyalty points get taken away when a refund is initiated?

cornpopper — Sun, 21 Sep 2025 11:16:12 GMT

Points don't automatically get removed when a loyalty customer returns an item(s) that they received points for. I know you can manually adjust but this should be a no brainer to automatically removed during a return.

Re: Loyalty points return during refund

ashc — Tue, 17 Sep 2019 14:56:49 GMT

Hi @cornpopper,

You're correct that the points don't automatically remove once a refund has been made. At this time, you have to manually remove the points from a customer's profile after a refund is initiated.

To do so from the Square App:

Tap Customers.
Search for your customer by name or phone number.
Tap Edit next to their Loyalty status.
Adjust points using the + / - signs.
Tap Save.

I do see what you mean by it making sense to be automatic though so I will let our Loyalty team know about this suggestion.

Re: Do loyalty points get taken away when a refund is initiated?

lilychiang — Fri, 01 Nov 2019 21:21:13 GMT

@cornpopper Good news - we just launched our feature to automatically adjust loyalty points after a refund. You don't have to worry about manually adjust points after the refund. Square will automatically do this for you.

Re: Do loyalty points get taken away when a refund is initiated?

pessosices — Fri, 01 Nov 2019 21:25:19 GMT

This is incredible! Thank you so much!

If a transaction where a reward was redeemed is refunded, does the reward get reloaded and unredeemed as well?

Re: Do loyalty points get taken away when a refund is initiated?

lilychiang — Fri, 01 Nov 2019 21:47:14 GMT

@pessosices - We do not un-redeem the reward because we believe not all businesses would want to unredeem rewards. In this case, you can still manage this via adjust points.

Re: Do loyalty points get taken away when a refund is initiated?

pessosices — Fri, 01 Nov 2019 21:49:36 GMT

Interesting - the issue is as a manager I wouldn’t know if a reward transaction was refunded to be able to go in and adjust points. Maybe having it as an optional setting, or a notification when the situation happens so we can decide and act as needed?

Re: Do loyalty points get taken away when a refund is initiated?

TBHospitalityNY — Fri, 01 Nov 2019 23:13:23 GMT

This is an awesome fix. Thanks for the update!

Re: Do loyalty points get taken away when a refund is initiated?

pessosices — Tue, 11 Feb 2020 01:33:04 GMT

@lilychiang @kellyj

Just wanted to follow up and definitely request for this to happen - we've had a few transactions where a customer used a reward, and then we've had to issue a refund and re-ring it up, and not realize that the reward & points didn't get reloaded to the account. If points would be automatically removed from transactions that were refunded, then points & rewards should be added back from transactions that were refunded.

Thanks!

Re: Do loyalty points get taken away when a refund is initiated?

ashc — Tue, 11 Feb 2020 13:04:52 GMT

Hey @pessosices!

I'd be happy to pass that along for you. Hopefully that'll be another thing to come in the future improvements for Loyalty! 🤞

Re: Do loyalty points get taken away when a refund is initiated?

OMMS — Mon, 13 Jun 2022 19:45:27 GMT

But what if the earned points have unlocked a reward for the customer, and after that, he requested a refund and the points deducted, will the reward be removed also?

Re: Do loyalty points get taken away when a refund is initiated?

Laurie_ — Thu, 16 Jun 2022 02:28:01 GMT

Hi @OMMS thanks for reaching out here!

It's my understanding that when the points are removed as a result of issuing a refund, the subsequent reward level is also updated. You can view a breakdown of the refund process based on the Loyalty Program Type type here.

Please reach out if you have any further questions.