Limits on loyalty rewards redemption?

anchorsawaygg — Mon, 28 Sep 2026 22:25:54 GMT

Is there a way to limit when and how much loyalty rewards can be used? For example I have a clearance sale going where some item are up to 75% off. I’m already losing money selling these items but because the rewards automatically pop up - customers are using their in store rewards points to purchase and many times I end up a net zero on the same.

is there a way to exempt use of loyalty rewards (in store credit) from items that are discounted? Additionally it would be nice if feature could work as a coupon - use a $25 in store credit reward for purchase of $50 or higher.

From when I set it up two years ago - it was pretty basic other than exempting certain items from being discounted or ability to “earn” points.

I really feel like a retailer I’m being taken advantage of by the loyalty program. I would also like for customers shopping clearance sales to not earn points on those purchases. At this point the only way to referee this is by the cashier. We have even had customers use rewards points on preorders that have no inventory - that doesn’t seem right either.

Advice or upgrade in loyalty program would be appreciated! Thanks,

Jessica

Re: Limits on loyalty rewards redemption?

kacey_k — Thu, 01 Oct 2026 16:57:21 GMT

Jessica, I completely understand the concern here, especially when you’re already marking clearance inventory down significantly and then a loyalty reward gets stacked on top of it.

If your Loyalty program is set up as spend-based, Square now allows you to exclude specific items or entire categories from earning points. In Dashboard, go to Customers → Loyalty → Settings → Eligible items and categories → Edit, then deselect the items/categories you don’t want earning points. One option could be creating a dedicated “Clearance” category and excluding that category from earning points.

The part that still seems limited is redemption. Square lets you configure rewards to apply to the entire sale, a specific item, or a specific category, but I’m not seeing a current setting that specifically says “this reward cannot be redeemed on sale/clearance items” or that lets you require something like $50 minimum purchase to redeem a $25 reward. Square does support minimum-spend requirements for Loyalty promotions, but those are for earning promotional/bonus points, not restricting redemption of an already-earned reward.

One workaround in-store is turning off the automatic reward redemption screen, which would keep rewards from automatically popping up for customers and allow the cashier to handle redemption manually. That’s under More → Loyalty → Show reward redemption screen in the POS app.

I do think the redemption restrictions you’re describing would make a really useful feature request, particularly “cannot combine with clearance/discounted items” and minimum purchase requirements for redemption. Those would give retailers much better control over margins.

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Limits on loyalty rewards redemption?

Re: Limits on loyalty rewards redemption?