Subscriptions combined with Loyalty points

[Farm_and_Wine]

I am researching using square's subscriptions as a membership fee and then on top of that using square's loyalty program to give One point per Dollar spent on the membership fee (and to only give points on the membership fee, not other products and services purchased by the customer...) Is this scenario above possible to do if I set up a subscription and assign the subscription to earn one point per dollar spent on membership?

If so, my next question is: Can the customer then come buy products from me and redeem the points back (one dollar per point spent) in a later transaction?  (Can the points be used to cover sales tax as well?)  

[SVLFever]

Hello @Farm_and_Wine !

I'm using Square Loyalty quite heavily, with about 2200 Loyalty visits/month.   To answer your specific question, unfortunately I can not give you a 100% guarantee that it will work, as I have no "subscriptions" to be able to test this on.

With that being said, you can select any item that you want to have points assigned to when a purchase is made, as shown here - 

Then you can create "rewards" based on your needs, which probably would be set to an amount of money off a purchase.  You can have up to $15 different reward levels, all of which are customizable.  Here is an example of some of mine -

Regarding the tax question, well that is probably best answered by your accountant, as state/local laws vary.

I would recommend activating the functionality for a month, as you can always cancel it for free.  Give it a shot and see if it works for you.

Good luck!

[Farm_and_Wine]

Thanks @SVLFever 🙂  - When you use a reward like $25 off entire sale and the price is $23 + $2 tax does the reward points "pay" the tax portion?  I know I will need to pay that sales tax to the state even if "points" paid for them, but I was curious is the points reward would pay for them.  And if square records the tax paid for me on that points-paid transaction that would be great, so I'll know how much to remit later.  I just wanted to know if my customer would still need to pull out a credit card to pay the tax when they redeem points.  Thanks for any additional info...  

[SVLFever]

Yes, currently in my configuration, if the purchase is $24.98 (with tax), and they use a $25 reward, $0 is due from the customer and the customer does NOT get $.02 back in money or points.   The reward balance is "lost" if the use more in rewards then the purchase price and the customer will not pay any tax in this situation.

If the reward redeemed is LESS than the total amount due, the tax will calculate based on the balance due for the item.   For example, if my purchase was $11 + tax = $11.99 (assume a 9% tax rate), but the customer uses a $10 reward, the balance due will be $1.09 ($1 balance plus 9% tax).  Let me know if this is not clear.

Again, please check with your accountant on local laws regarding taxes due in this case, as this scenario may not work in your municipality (for all out there reading this).

[Farm_and_Wine]

Thank you @ SVLFever!  Does anyone else out there give loyalty points on a subscription/membership type item?  Does the square system allow that?