Abstract: A acquirer system used for credit card transaction processing includes a loyalty server to manage issuance of loyalty points as transactions are processed and to provide settlement features. The loyalty server uses loyalty qualifying criteria and assigned point values stored in an associated database. When points are awarded, the loyalty server records the value of the points and electronically transfers amounts from an account of a merchant to an account of the loyalty point issuer. The merchant may be multi-tiered, with the point value allotted between a central merchant organization and individual retail stores.