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    How should I handle loyalty points when a customer gets a refund?

    Written by PEKO Team.Last updated: 21/05/2026.

    Reverse the points proportionally to the refunded amount, log the reversal in the customer's history, and never claw back points that were already redeemed. Modern loyalty platforms handle the reversal automatically when you process the refund through the POS.

    Published: 09/05/2026

    The default policy that minimises disputes: full refund → reverse all points earned on that order; partial refund → reverse proportionally; already-redeemed points stay redeemed (don't claw back). Document this policy and train staff to mention it at refund time.

    Accounting note: in chains using accrual-basis books, reversed points reduce the loyalty liability on the balance sheet. PEKO's reporting ships this automatically for the finance team.

    FAQ

    What if the customer redeemed the points before getting the refund?

    Don't claw back. The goodwill cost of removing already-used rewards almost always outweighs the margin recovered. Set the policy in writing and train staff.

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