Square Loyalty: How the Program Works, Setting It Up and Managing It

Here's the catch. The program type you pick limits what you can do later. Only spend-based programs let you exclude items from earning points, and each type treats refunds differently, so a partial refund can take points back in one program and leave them alone in another.

Customers earn rewards however they pay, and they can track their points and rewards in Cash App. To set the program up, you need to be the account owner or a team member with loyalty permissions.

The three decisions behind every program

Decision	Your options, as of October 2026
Terminology	Call them points, stars or any term that fits your brand
How customers earn	By amount spent, items bought, category, or number of visits
Rewards	A discount on the whole sale, a discount on an item or category, a free item, or a combo

Reward names can be up to 100 characters, but Square recommends around 50 or fewer so they display well on your point of sale, on receipts and during customer enrolment.

How to create a Square Loyalty program

1. Open Square Dashboard. It's the only place you can create the program.
2. Set your terminology under Terminology, or keep points.
3. Choose your program type and the purchase requirements for earning.
4. Add your rewards.
5. Choose which locations take part.
6. At the end, review the program type and points expiry settings, change anything you need, and finish.

Adding reward tiers

A multi-reward program gives customers tiers: they can redeem when they reach one, or keep going towards the next for a bigger reward. To add a tier, click Settings, then Add a new reward, pick the reward type and value, and enter the discount. You can have up to 15 rewards, and once you hit 15 you'll need to delete one before adding another.

Excluding items from earning points

On a spend-based program, click Edit next to Eligible items and categories and deselect anything that shouldn't earn points. Uncategorised items sit at the bottom of the list. Exclude a whole category and any new items you add to it are excluded automatically. This option isn't available on visit-based, item-based or category-based programs.

Setting points to expire

You can make points expire after a set number of months to bring customers back sooner, or choose Never. Set it during setup, or later from Square Dashboard under Earning Points, by clicking Edit next to Expiry. Customers get an SMS notification 14 days before their points expire, and you can check a customer's expiring points from the Loyalty section of their profile, under View Expiring Points. On a mobile device, tap More, then Customers, and select the customer.

Locations and free-item rewards

During setup you choose which locations take part, and customers can earn points and redeem rewards at any of them. To add one, go to Locations in Square Dashboard and click Create Location. Once you add a location you can't delete it, only deactivate it, and an inactive location stays visible and can be reactivated at any time. If a reward is a free item or a combo, select the item or category from each location's Item Library. Otherwise customers can't redeem the coupon at locations that don't have one selected.

What refunds do to loyalty points

Program type	Full refund	Partial item or custom refund, as of October 2026
Amount spent	All points removed	Points removed in proportion to the amount refunded
Per visit	All points removed	Points removed if the amount refunded is below the spending threshold to earn points
Per item or category	All points removed	Points for a refunded item are removed; a custom refund amount removes none

Managing rewards day to day

Customers paying with a card linked to their loyalty account see a reward redemption screen at checkout and can pick a reward to apply. That works on Square Register, Square Terminal and the Square Point of Sale app for iOS and Android. If you need to cancel a reward or coupon, void it from the customer's profile.

1. Search for the customer by name or phone number.
2. Scroll to the Coupons and Rewards section of their profile and click Manage.
3. Tick the box for each coupon you want to void.
4. Click Void, then Confirm Void.

My verdict on Square Loyalty

I'd go spend-based if you want the most control, because it's the only type that lets you keep certain items out of the points. I'd pick visit-based if repeat visits matter more to you than basket size. Either way, set an expiry, because that 14-day SMS is a free nudge to come back. Use tiers sparingly: 15 rewards is the ceiling, and a short ladder is easier for customers to follow. If you're choosing hardware, here's what you get with Square Register, and if you sell online too, here's how Square Online works now.

Loyalty works best when the follow-up runs without you, and setting up automations like that is part of what I help small businesses with. I run AI training and workshops for teams, and help businesses with AI enablement, AI automation and GEO, which is about getting your business seen and cited in AI answers. Most of that work is with SaaS marketing teams and small businesses. Here's how we can work together.

Frequently asked questions

Where do I set up Square Loyalty?

You can only create a loyalty program from Square Dashboard.

How many rewards can a Square Loyalty program have?

Up to 15. If you already have 15 rewards, delete one before creating a new reward.

Do Square Loyalty points expire?

Only if you set them to. You can expire points after a set number of months or choose Never, and customers get an SMS 14 days before their points expire.

Can I stop some items earning Square Loyalty points?

Yes, on spend-based programs only. Deselect items or categories under Eligible items and categories.

How do customers join Square Loyalty?

They enter their mobile number at the register, when paying an invoice, or online when completing a purchase.