diff --git a/app/modules/loyalty/locales/en.json b/app/modules/loyalty/locales/en.json
index f090b3c3..ecdf7c60 100644
--- a/app/modules/loyalty/locales/en.json
+++ b/app/modules/loyalty/locales/en.json
@@ -480,6 +480,9 @@
             "table_points_earned": "Points Earned",
             "table_points_redeemed": "Points Redeemed",
             "table_transactions_30d": "Transactions (30d)",
+            "transaction_categories": "Transaction Categories",
+            "select_store": "Select a store...",
+            "no_categories": "No categories configured. Click Add to create one.",
             "admin_policy_settings": "Admin Policy Settings",
             "staff_pin_policy": "Staff PIN Policy",
             "self_enrollment": "Self Enrollment",
@@ -709,6 +712,7 @@
             "reward_redeemed": "Reward redeemed: {name}",
             "card_label": "Card",
             "confirm": "Confirm",
+            "select_category": "Category (what was sold)",
             "pin_authorize_text": "Enter your staff PIN to authorize this transaction",
             "free_item": "Free item",
             "reward_label": "Reward",
diff --git a/app/modules/loyalty/static/admin/js/loyalty-merchant-detail.js b/app/modules/loyalty/static/admin/js/loyalty-merchant-detail.js
index 5804f1b7..879f4c09 100644
--- a/app/modules/loyalty/static/admin/js/loyalty-merchant-detail.js
+++ b/app/modules/loyalty/static/admin/js/loyalty-merchant-detail.js
@@ -33,6 +33,12 @@ function adminLoyaltyMerchantDetail() {
         settings: null,
         locations: [],
 
+        // Transaction categories
+        selectedCategoryStoreId: '',
+        storeCategories: [],
+        showAddCategory: false,
+        newCategoryName: '',
+
         // State
         loading: false,
         error: null,
@@ -258,6 +264,59 @@ function adminLoyaltyMerchantDetail() {
         formatNumber(num) {
             if (num === null || num === undefined) return '0';
             return new Intl.NumberFormat('en-US').format(num);
+        },
+
+        // Transaction categories
+        async loadCategoriesForStore() {
+            if (!this.selectedCategoryStoreId) {
+                this.storeCategories = [];
+                return;
+            }
+            try {
+                const response = await apiClient.get(`/admin/loyalty/stores/${this.selectedCategoryStoreId}/categories`);
+                this.storeCategories = response?.categories || [];
+            } catch (error) {
+                loyaltyMerchantDetailLog.warn('Failed to load categories:', error.message);
+                this.storeCategories = [];
+            }
+        },
+
+        async createCategory() {
+            if (!this.newCategoryName || !this.selectedCategoryStoreId) return;
+            try {
+                await apiClient.post(`/admin/loyalty/stores/${this.selectedCategoryStoreId}/categories`, {
+                    name: this.newCategoryName,
+                    display_order: this.storeCategories.length,
+                });
+                this.newCategoryName = '';
+                this.showAddCategory = false;
+                await this.loadCategoriesForStore();
+                Utils.showToast('Category created', 'success');
+            } catch (error) {
+                Utils.showToast(error.message || 'Failed to create category', 'error');
+            }
+        },
+
+        async toggleCategoryActive(cat) {
+            try {
+                await apiClient.patch(`/admin/loyalty/stores/${this.selectedCategoryStoreId}/categories/${cat.id}`, {
+                    is_active: !cat.is_active,
+                });
+                await this.loadCategoriesForStore();
+            } catch (error) {
+                Utils.showToast(error.message || 'Failed to update category', 'error');
+            }
+        },
+
+        async deleteCategory(catId) {
+            if (!confirm('Delete this category?')) return;
+            try {
+                await apiClient.delete(`/admin/loyalty/stores/${this.selectedCategoryStoreId}/categories/${catId}`);
+                await this.loadCategoriesForStore();
+                Utils.showToast('Category deleted', 'success');
+            } catch (error) {
+                Utils.showToast(error.message || 'Failed to delete category', 'error');
+            }
         }
     };
 }
diff --git a/app/modules/loyalty/static/store/js/loyalty-terminal.js b/app/modules/loyalty/static/store/js/loyalty-terminal.js
index 6efdbfca..8138e9c2 100644
--- a/app/modules/loyalty/static/store/js/loyalty-terminal.js
+++ b/app/modules/loyalty/static/store/js/loyalty-terminal.js
@@ -31,6 +31,8 @@ function storeLoyaltyTerminal() {
         // Transaction inputs
         earnAmount: null,
         selectedReward: '',
+        selectedCategory: null,
+        categories: [],
 
         // PIN entry
         showPinEntry: false,
@@ -63,6 +65,7 @@ function storeLoyaltyTerminal() {
             }
 
             await this.loadData();
+            await this.loadCategories();
 
             loyaltyTerminalLog.info('=== LOYALTY TERMINAL INITIALIZATION COMPLETE ===');
         },
@@ -279,13 +282,25 @@ function storeLoyaltyTerminal() {
             }
         },
 
+        // Load categories for this store
+        async loadCategories() {
+            try {
+                const response = await apiClient.get('/store/loyalty/categories');
+                this.categories = (response?.categories || []).filter(c => c.is_active);
+                loyaltyTerminalLog.info(`Loaded ${this.categories.length} categories`);
+            } catch (error) {
+                loyaltyTerminalLog.warn('Failed to load categories:', error.message);
+            }
+        },
+
         // Add stamp
         async addStamp() {
             loyaltyTerminalLog.info('Adding stamp...');
 
             await apiClient.post('/store/loyalty/stamp', {
                 card_id: this.selectedCard.id,
-                staff_pin: this.pinDigits
+                staff_pin: this.pinDigits,
+                category_id: this.selectedCategory || undefined,
             });
 
             Utils.showToast(I18n.t('loyalty.store.terminal.stamp_added'), 'success');
@@ -297,7 +312,7 @@ function storeLoyaltyTerminal() {
 
             await apiClient.post('/store/loyalty/stamp/redeem', {
                 card_id: this.selectedCard.id,
-                staff_pin: this.pinDigits
+                staff_pin: this.pinDigits,
             });
 
             Utils.showToast(I18n.t('loyalty.store.terminal.stamps_redeemed'), 'success');
@@ -310,7 +325,8 @@ function storeLoyaltyTerminal() {
             const response = await apiClient.post('/store/loyalty/points/earn', {
                 card_id: this.selectedCard.id,
                 purchase_amount_cents: Math.round(this.earnAmount * 100),
-                staff_pin: this.pinDigits
+                staff_pin: this.pinDigits,
+                category_id: this.selectedCategory || undefined,
             });
 
             const pointsEarned = response.points_earned || Math.floor(this.earnAmount * (this.program?.points_per_euro || 1));
@@ -329,7 +345,7 @@ function storeLoyaltyTerminal() {
             await apiClient.post('/store/loyalty/points/redeem', {
                 card_id: this.selectedCard.id,
                 reward_id: this.selectedReward,
-                staff_pin: this.pinDigits
+                staff_pin: this.pinDigits,
             });
 
             Utils.showToast(I18n.t('loyalty.store.terminal.reward_redeemed', {name: reward.name}), 'success');
diff --git a/app/modules/loyalty/templates/loyalty/admin/merchant-detail.html b/app/modules/loyalty/templates/loyalty/admin/merchant-detail.html
index a27a8c47..7b1400b8 100644
--- a/app/modules/loyalty/templates/loyalty/admin/merchant-detail.html
+++ b/app/modules/loyalty/templates/loyalty/admin/merchant-detail.html
@@ -201,6 +201,83 @@
         {% endcall %}
     </div>
 
+    <!-- Transaction Categories (per store) -->
+    <div x-show="locations.length > 0" class="px-4 py-3 mb-8 bg-white rounded-lg shadow-md dark:bg-gray-800">
+        <h3 class="mb-4 text-lg font-semibold text-gray-700 dark:text-gray-200">
+            <span x-html="$icon('tag', 'inline w-5 h-5 mr-2')"></span>
+            {{ _('loyalty.admin.merchant_detail.transaction_categories') }}
+        </h3>
+
+        <!-- Store selector -->
+        <div class="mb-4">
+            <select x-model="selectedCategoryStoreId" @change="loadCategoriesForStore()"
+                    class="w-full md:w-auto px-4 py-2 text-sm border border-gray-300 dark:border-gray-600 rounded-lg dark:bg-gray-700 dark:text-gray-300">
+                <option value="">{{ _('loyalty.admin.merchant_detail.select_store') }}</option>
+                <template x-for="loc in locations" :key="loc.store_id">
+                    <option :value="loc.store_id" x-text="loc.store_name"></option>
+                </template>
+            </select>
+        </div>
+
+        <!-- Categories list -->
+        <div x-show="selectedCategoryStoreId">
+            <div class="flex items-center justify-between mb-3">
+                <p class="text-sm text-gray-500 dark:text-gray-400" x-text="storeCategories.length + ' categories'"></p>
+                <button @click="showAddCategory = true" type="button"
+                        class="px-3 py-1.5 text-sm font-medium text-white bg-purple-600 rounded-lg hover:bg-purple-700">
+                    <span x-html="$icon('plus', 'inline w-4 h-4 mr-1')"></span>
+                    {{ _('loyalty.common.add') }}
+                </button>
+            </div>
+
+            <!-- Add category inline form -->
+            <div x-show="showAddCategory" class="mb-4 p-3 border border-purple-200 dark:border-purple-800 rounded-lg bg-purple-50 dark:bg-purple-900/20">
+                <div class="flex items-end gap-3">
+                    <div class="flex-1">
+                        <label class="block text-xs font-medium text-gray-600 dark:text-gray-400 mb-1">{{ _('loyalty.common.name') }}</label>
+                        <input type="text" x-model="newCategoryName" maxlength="100"
+                               class="w-full px-3 py-2 text-sm border border-gray-300 dark:border-gray-600 rounded-lg dark:bg-gray-700 dark:text-gray-300">
+                    </div>
+                    <button @click="createCategory()" :disabled="!newCategoryName"
+                            class="px-4 py-2 text-sm font-medium text-white bg-purple-600 rounded-lg hover:bg-purple-700 disabled:opacity-50">
+                        {{ _('loyalty.common.save') }}
+                    </button>
+                    <button @click="showAddCategory = false; newCategoryName = ''" type="button"
+                            class="px-4 py-2 text-sm font-medium text-gray-700 bg-white border border-gray-300 rounded-lg hover:bg-gray-50 dark:bg-gray-800 dark:text-gray-300 dark:border-gray-600">
+                        {{ _('loyalty.common.cancel') }}
+                    </button>
+                </div>
+            </div>
+
+            <!-- Categories table -->
+            <div class="space-y-2">
+                <template x-for="cat in storeCategories" :key="cat.id">
+                    <div class="flex items-center justify-between p-3 border border-gray-200 dark:border-gray-700 rounded-lg">
+                        <div class="flex items-center gap-3">
+                            <span class="text-sm font-medium text-gray-700 dark:text-gray-300" x-text="cat.name"></span>
+                            <span x-show="!cat.is_active" class="px-2 py-0.5 text-xs rounded-full bg-gray-100 text-gray-500 dark:bg-gray-700">{{ _('loyalty.common.inactive') }}</span>
+                        </div>
+                        <div class="flex items-center gap-2">
+                            <button @click="toggleCategoryActive(cat)" type="button"
+                                    :aria-label="cat.is_active ? '{{ _('loyalty.common.deactivate') }}' : '{{ _('loyalty.common.activate') }}'"
+                                    class="text-sm" :class="cat.is_active ? 'text-orange-500 hover:text-orange-700' : 'text-green-500 hover:text-green-700'">
+                                <span x-html="$icon(cat.is_active ? 'pause' : 'play', 'w-4 h-4')"></span>
+                            </button>
+                            <button @click="deleteCategory(cat.id)" type="button"
+                                    aria-label="{{ _('loyalty.common.delete') }}"
+                                    class="text-red-500 hover:text-red-700">
+                                <span x-html="$icon('trash', 'w-4 h-4')"></span>
+                            </button>
+                        </div>
+                    </div>
+                </template>
+                <p x-show="storeCategories.length === 0" class="text-sm text-gray-500 dark:text-gray-400 py-4 text-center">
+                    {{ _('loyalty.admin.merchant_detail.no_categories') }}
+                </p>
+            </div>
+        </div>
+    </div>
+
     <!-- Merchant Settings (Admin-controlled) -->
     <div class="px-4 py-3 mb-8 bg-white rounded-lg shadow-md dark:bg-gray-800">
         <h3 class="mb-4 text-lg font-semibold text-gray-700 dark:text-gray-200">
diff --git a/app/modules/loyalty/templates/loyalty/store/terminal.html b/app/modules/loyalty/templates/loyalty/store/terminal.html
index 0dfc6fa0..d27ea834 100644
--- a/app/modules/loyalty/templates/loyalty/store/terminal.html
+++ b/app/modules/loyalty/templates/loyalty/store/terminal.html
@@ -324,6 +324,24 @@
     <p class="text-sm text-gray-600 dark:text-gray-400 mb-4">
         {{ _('loyalty.store.terminal.pin_authorize_text') }}
     </p>
+
+    <!-- Category selector (only shown when categories exist and action is stamp/earn) -->
+    <div x-show="categories.length > 0 && (pendingAction === 'stamp' || pendingAction === 'earn')" class="mb-4">
+        <label class="block text-xs font-medium text-gray-600 dark:text-gray-400 mb-2">{{ _('loyalty.store.terminal.select_category') }}</label>
+        <div class="flex flex-wrap gap-2">
+            <template x-for="cat in categories" :key="cat.id">
+                <button type="button"
+                        @click="selectedCategory = (selectedCategory === cat.id) ? null : cat.id"
+                        class="px-3 py-1.5 text-sm font-medium rounded-full border transition-colors"
+                        :class="selectedCategory === cat.id
+                            ? 'bg-purple-600 text-white border-purple-600'
+                            : 'bg-white text-gray-700 border-gray-300 hover:bg-gray-50 dark:bg-gray-700 dark:text-gray-300 dark:border-gray-600'"
+                        x-text="cat.name">
+                </button>
+            </template>
+        </div>
+    </div>
+
     <div class="flex justify-center mb-4" aria-live="polite" aria-atomic="true">
         <div class="flex gap-2" role="status" :aria-label="pinDigits.length + ' of 4 digits entered'">
             <template x-for="i in 4">