Do customers earn loyalty points on amounts for which they redeem/apply earned loyalty points when placing an order?
Response:
Customers will earn loyalty points on the amounts for which loyalty points were redeemed if the "Apply Loyalty As" setting (Settings section / Site Options / Customer Loyalty) is set to "Payment Method".
Customers do not earn loyalty points on the amounts for which loyalty points were redeemed when the "Apply Loyalty As" setting is set to "Discount".