I too agree that earning points on a transaction that had a discount for points earned is a must.  It is a reward and loyalty program and they are being rewarded for being loyal.  if you make it restrictive then you are just making the consumer try to work around your rewards system to not be penalized.  But every business is allowed to make a system as they see fit.

we don't use Square loyalty, we have punch cards and we allow people to use their purchase today to fill the card as long as there is enough on the transaction to still get the punch after the discount is applied.  people are always like trying to "scam" it by "hey I need this in 2 transactions" and we're like don't worry we'll give you your discount, no need to make multiple transactions.

Without judgement please, is this a possiblilty? 

Not everyone's business is the same. 

We've all been to businesses where you bring your punchcard, and you can redeem your punchcard for your coupon or free oil change or whatever. You don't get a new punch on the redeeming of the punchcard. 

I am asking if it is a feature that is possible to be turned on?

thanks

There’s no judgement at all, just sharing my experience with the program and with my customers. 

So in that example that you gave, using square loyalty if your reward was for a free oil change, the Customer would redeem a free oil change and not earn more points, just like with a paper system. 

If the customer redeemed the free oil change on their main car and in the same transaction got another oil change on a second car, they would earn 1 point for only the 1 oil change they paid for - just like they would in the paper example you mentioned. 

What are the parameters of the loyalty program you want to put together? I would love to help put it in the context of the square loyalty for you and see if it works for you!