A method, system and computer program product for administering a discount rewards program to customers of merchant establishment is disclosed. A customer is assigned a discount level as part of enrollment into the discount rewards program and a bill amount is discounted based on the assigned discount level. For a next purchase transaction at the merchant establishment, it is determined whether the next purchase transaction is within a predefined time interval from the purchase transaction associated with the customer enrollment. A current discount level is determined by incrementing or decrementing the discount level based on the determination of whether the next purchase transaction is within the predefined time interval or not. A bill amount is discounted based on the current discount level and the discounted bill amount is provided to the customer to reward the customer.