Loyalty programs used to be simple—you signed up, got a card or an app, and earned points every time you shopped. But in 2025, these programs have become far more sophisticated, and in some cases, far more invasive. Many retailers are now collecting data beyond your in-store purchases, tracking your online activity, app usage, and even off-site behavior. While this information can lead to better deals and more personalized offers, it also raises serious privacy concerns. Here’s a look at seven ways your loyalty programs could be tracking you away from the store.
1. Tracking Your Online Browsing Behavior
Many loyalty programs are linked to online accounts, which makes it easy for companies to track what you browse—even if you don’t buy anything. For example, clicking on a store’s website while logged into your loyalty account can record what items you look at, the time you spend on each page, and the products you add to your cart. This information is often used to target you with emails or app notifications for similar products. While it can be convenient, it also means your shopping habits are being monitored in real time. Understanding this helps you decide how much access you want to give these programs.
2. Monitoring Your Activity Through Mobile Apps
Retail loyalty apps often request permissions that go far beyond processing your rewards. Some can access your location, track how often you open the app, and even gather information about other apps you use. Location tracking, for example, can be used to send push notifications when you’re near a store or competitor. While these features can feel helpful, they also give companies a clear picture of your movements. Reviewing app permissions regularly is one way to control how much data you share.
3. Linking Purchase History Across Multiple Brands
Some loyalty programs are part of larger corporate networks, meaning your data could be shared across multiple brands under the same parent company. This allows them to create a fuller picture of your buying habits—combining grocery purchases, clothing buys, and even travel bookings into a single consumer profile. That information can then be used to predict what you might want to buy next, regardless of where you shop. While this can result in personalized offers, it also means your purchases aren’t as private as you might think. Being aware of these partnerships helps you understand who really has access to your information.
4. Using Payment Data to Connect Your Purchases
Even if you don’t scan your loyalty card, some programs can still track your purchases by linking them to the credit or debit card you used when signing up. This means every transaction you make—whether in-store or online—could be added to your loyalty profile. Some companies even partner with payment processors to gather data on purchases made at competing stores. While they may frame this as a way to improve offers, it also raises concerns about just how far loyalty program tracking can reach. Using separate payment methods for different types of purchases can limit this kind of tracking.
5. Selling or Sharing Data With Third Parties
One of the more controversial aspects of loyalty program tracking is the sale or sharing of consumer data with third-party advertisers. These advertisers may not just target you within the store’s ecosystem—they can follow you across the web, showing ads on unrelated sites based on your shopping history. This can make it feel like your every move is being watched, even when you’re nowhere near the store. While many companies claim the data is anonymized, studies have shown it’s often easy to re-identify individuals based on patterns. Reading the privacy policy before signing up can reveal whether your data might be shared in this way.
6. Using AI to Predict Future Purchases
In 2025, artificial intelligence is playing a bigger role in loyalty program tracking. AI algorithms analyze your purchase history, online searches, and even social media activity to predict what you’ll want next. This can lead to eerily accurate ads, offers, and recommendations that make it clear your data is being used in ways you didn’t explicitly agree to. While the technology can make shopping more efficient, it also blurs the line between helpful personalization and intrusive surveillance. Deciding where you stand on this balance is key to protecting your privacy.
7. Collecting Location Data Even When You’re Not Shopping
Some loyalty programs use geofencing technology, which can track your phone’s location when you’re in certain areas—even if you’re not actively using the app. This allows companies to see when you visit competitors, pass by certain neighborhoods, or spend time in specific venues. They can then adjust offers and promotions based on your real-world movements. While this can sometimes score you a timely coupon, it also means your physical presence is part of the data they collect. Turning off location services for retail apps can limit this kind of tracking.
Balancing Rewards With Privacy in the Loyalty Era
Loyalty programs can be a great way to save money and enjoy exclusive perks, but they come with hidden trade-offs. The more data you share, the more targeted and personalized the offers—but also the more detailed your digital profile becomes. For some people, the rewards outweigh the privacy concerns; for others, the tracking feels too invasive. By understanding exactly how loyalty program tracking works, you can make informed decisions about which programs to join and how to limit your exposure. In the end, knowing where your information goes is just as valuable as the points you earn.
Are you surprised to know how your loyalty programs are being used? Let’s talk about it in the comments.
What to Read Next…
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