diff --git a/backend/handlers/payments/loyalty.go b/backend/handlers/payments/loyalty.go
index 97a6083..0cf6677 100644
--- a/backend/handlers/payments/loyalty.go
+++ b/backend/handlers/payments/loyalty.go
@@ -60,6 +60,15 @@ func ApplyLoyaltyRedemption(w http.ResponseWriter, r *http.Request) {
 		return
 	}
 
+	// Loyalty redemption must be on the first payment — reject if a real payment
+	// (non-discount) already exists on this booking.
+	var realPaymentExists bool
+	db.DB.QueryRow(r.Context(), `SELECT EXISTS(SELECT 1 FROM payments WHERE booking_id = $1 AND payment_method != 'discount')`, bookingID).Scan(&realPaymentExists)
+	if realPaymentExists {
+		http.Error(w, "Loyalty must be redeemed on the first payment for this booking", http.StatusBadRequest)
+		return
+	}
+
 	var loyaltyStamps int
 	if err := db.DB.QueryRow(r.Context(), `SELECT loyalty_stamps FROM users WHERE id = $1`, userID).Scan(&loyaltyStamps); err != nil {
 		if errors.Is(err, pgx.ErrNoRows) {
@@ -70,7 +79,7 @@ func ApplyLoyaltyRedemption(w http.ResponseWriter, r *http.Request) {
 		http.Error(w, "internal server error", http.StatusInternalServerError)
 		return
 	}
-	if loyaltyStamps < 10 {
+	if loyaltyStamps < LoyaltyStampCost {
 		http.Error(w, "Insufficient loyalty stamps", http.StatusBadRequest)
 		return
 	}
@@ -125,17 +134,12 @@ func ApplyLoyaltyRedemption(w http.ResponseWriter, r *http.Request) {
 		return
 	}
 
-	discountAmount := roundTo2(bookingTotal * 0.10)
-
-	if discountAmount <= 0 {
-		http.Error(w, "Booking total is zero, no discount applicable", http.StatusBadRequest)
-		return
-	}
+	discountAmount := roundTo2(bookingTotal * LoyaltyDiscountPercent / 100)
 
 	if _, err := tx.Exec(r.Context(), `
 		INSERT INTO booking_discounts (booking_id, user_id, discount_source, source_id, campaign_type, milestone_type, discount_percent, original_total, discount_amount)
-		VALUES ($1, $2, 'loyalty', $3, NULL, NULL, 10.00, $4, $5)
-	`, bookingID, userID, redemptionID, bookingTotal, discountAmount); err != nil {
+		VALUES ($1, $2, 'loyalty', $3, NULL, NULL, $6, $4, $5)
+	`, bookingID, userID, redemptionID, bookingTotal, discountAmount, LoyaltyDiscountPercent); err != nil {
 		log.Printf("Failed to insert booking discount: %v", err)
 		http.Error(w, "internal server error", http.StatusInternalServerError)
 		return
diff --git a/backend/handlers/payments/refund_policy.go b/backend/handlers/payments/refund_policy.go
index 0736247..62dc686 100644
--- a/backend/handlers/payments/refund_policy.go
+++ b/backend/handlers/payments/refund_policy.go
@@ -16,5 +16,6 @@ const (
 	ProtectedDepositMaxPct = 0.50
 	RequiredDepositPct     = 0.20
 
-	LoyaltyStampCost = 10
+	LoyaltyStampCost       = 10
+	LoyaltyDiscountPercent = 10.0
 )
diff --git a/backend/handlers/payments/refunds.go b/backend/handlers/payments/refunds.go
index 12eee00..6116107 100644
--- a/backend/handlers/payments/refunds.go
+++ b/backend/handlers/payments/refunds.go
@@ -255,7 +255,7 @@ func ProcessCancellationRefund(
 			if err != nil {
 				log.Printf("Failed to refund loyalty stamps for booking %s: %v", bookingID, err)
 			} else {
-				log.Printf("Refunded 10 loyalty stamps to user %s after cancellation of booking %s", bookingUserID, bookingID)
+				log.Printf("Refunded %d loyalty stamps to user %s after cancellation of booking %s", LoyaltyStampCost, bookingUserID, bookingID)
 			}
 		}
 	}