Inquiry: "Loyalty was disabled in POS during this transaction" Appearing in Dashboard Orders

Questions
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Dear Square Support Team,

We are reaching out for assistance regarding an issue we are observing in our Square Dashboard related to Loyalty behavior during certain transactions.

Issue Description

In the Square Dashboard, some orders display the following message:

“Loyalty was disabled in POS during this transaction”

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Order ID: YT9Rv6lOg12f3yZFzcaj9uZS8PPZY

We would like to understand the exact meaning of this message and the conditions under which it is triggered.

Our Current Transaction Flow

To provide context, our integration flow is as follows:

  1. We create orders using the Square Orders API.

  2. We associate a customer_id with each order during creation.

  3. Payments are processed via the Square Terminal API.

  4. The Loyalty program is enabled and fully configured at the account level.

  5. Customers are enrolled in the Loyalty program, and we expect points to be accrued automatically after successful transactions.

Important Observation

We noticed that for orders where this message appears:

“Loyalty was disabled in POS during this transaction”

the associated customer_id is not a Loyalty Program member (not a Loyalty Account).

This suggests that the customer linked to these orders is either not enrolled in Loyalty or not recognized as a Loyalty participant at the time of the transaction.

Questions

We would appreciate clarification on the following:

  1. What exactly does the message “Loyalty was disabled in POS during this transaction” mean in Square’s system?

  2. Does this message specifically indicate that the customer is not enrolled in the Loyalty program?

  3. Under what conditions is Loyalty considered disabled during a transaction?

  4. Is Loyalty evaluation skipped automatically when the associated customer is not a Loyalty account?

  5. Does the use of Orders API + Terminal API require any additional configuration to ensure Loyalty is applied correctly?

  6. Are there any recommended best practices to ensure consistent Loyalty eligibility detection across API-driven transactions?

Additional Context

  • customer_id is always included when creating orders.

  • The issue occurs inconsistently across transactions.

  • Loyalty program is fully active and configured in Square Dashboard.

  • Affected customers in these orders are not Loyalty members.

We would greatly appreciate any insight, debugging guidance, or documentation references that can help us understand and resolve this behavior.

Thank you for your support.

Best regards,

Murphy.zhang