The scheme launched at the start of 2010 and has around 60 of Pudsey's shops signed up.
Big blue posters advertise the loyalty card hoping it will give shoppers an extra incentive to spend money with local shops.
If a shopper collects stamps from six different outlets in the scheme he or she stands a chance of winning £50 to be spent in the participating shops.
Around half of the town's shops currently belong to the scheme.
Pudsey still has a relatively broad range of independently-owned shops despite the fact that the large Owlcotes shopping centre is just around the corner and within walking distance.
Does it matter that many High Streets are beginning to look similar? The New Economics Foundation think tank, coined the term Clone Town in 2004. The foundation argue that the decline of independent shops is damaging to society because of the loss of diversity.
Desirable to consumers
However the opposite argument claims that chain stores provide products that are desirable to consumers, and increasing sites in towns gives access to good that the population want.
Gilly's Lillies is owned and run by Gillian Sandford. The flower shop, situated on Manor House Street, is a member of the scheme as Gillian explains:
"Anything that can be done to promote Pudsey is a good thing as far as I am concerned."
Some market stalls are members of the scheme
When asked by BBC Radio Leeds shoppers in Pudsey had a variety of reasons for shopping in the town including, "I love all the little cobble streets" and the existence of "A lot of bargain shops, that's always a draw".
The scheme is intended to give shoppers a reason to stay in the town and give something back for their loyalty.
Nigel Conder, Pudsey Town Centre Manager, claims that the number of participating shops has doubled in Pudsey.
The same loyalty scheme was also launched in Armley although it currently seems to have been less successful in that venue.
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