Would you not just convert points into discount?
If you tender it it is sales youll pay tax on but your ‘giving it away’/discounting through loyalty setup so isnt sales.
If you want it configured as a tender then follow the Samba Card tutorial for v3.
Here is a post containing a link to the original post and also an export file.
As @JTRTech mentions, I think that this ‘credit’ should be applied as a discount as no money has been exchanged.
You can see my discussion with QMcKay and how this was achieved here Loyalty Card Credit as Discount vs Tender
Using points as a payment method literally means defining a new foreign currency. You need to track separate customer balance in that currency and also define prices for products in that currency. You’ll also need a kind of currency conversion. To be able to say… “you can pay $10 or 5000 points”. I believe this is really complex scheme for restaurants and operating it properly really needs kind of expertise on that area. This is similar to airline’s mile promotions and I believe they benefit from that by adjusting dynamic conversion rates that chances according to customer’s demand.