This feature allows the system to give loyalty points to the customer after a specified period, so as to protect your store from unfair practices. E.g. A customer quickly redeems their points and then returns the order for a refund.
For example, when you create a purchase activity rule and set an approval period of 10 days, the system will give loyalty points after 10 days from the date of order. The points will be pending during the approval period.
Check more details about – What is Loyalty Rewards Program here.