A recommendation server provides product or service suggestions to a user based on transaction and location data. The recommendation server receives transaction data from a merchant device operated by a merchant affiliate. The transaction data contains information that is used to identify a suggested product or service. A search vicinity is determined based on the location of the merchant affiliate and the suggested product or service. A suggested merchant is determined that is located within the search vicinity, and that sells the suggested product or service. Information about the suggested merchant and the suggested product or service is sent to a user device operated by the user in order to encourage them to make a purchase from the suggested merchant.