diff --git a/backend/services/loyalty/app/core/config.py b/backend/services/loyalty/app/core/config.py
index 463d99b..c078905 100644
--- a/backend/services/loyalty/app/core/config.py
+++ b/backend/services/loyalty/app/core/config.py
@@ -59,15 +59,14 @@ class Settings(BaseSettings):
         if self.environment == "production":
             if self.debug:
                 raise ValueError("LOYALTY debug must be false in production")
-            defaults = ("superapp_password", "localhost:5432")
-            if any(token in self.database_url for token in defaults):
-                raise ValueError(
-                    "LOYALTY_DATABASE_URL must be set explicitly in production"
-                )
-            if any(token in self.database_url_sync for token in defaults):
-                raise ValueError(
-                    "LOYALTY_DATABASE_URL_SYNC must be set explicitly in production"
-                )
+            # Reject local/dev DSN hosts only — docker compose uses @postgres with
+            # the shared DB password, which is valid in this deployment topology.
+            forbidden_hosts = ("localhost", "127.0.0.1")
+            for url in (self.database_url, self.database_url_sync):
+                if any(h in url for h in forbidden_hosts):
+                    raise ValueError(
+                        "LOYALTY database URL must not use localhost in production"
+                    )
         return self
 
     @property
diff --git a/backend/services/loyalty/scripts/run_migrations.py b/backend/services/loyalty/scripts/run_migrations.py
new file mode 100644
index 0000000..58e2a6a
--- /dev/null
+++ b/backend/services/loyalty/scripts/run_migrations.py
@@ -0,0 +1,50 @@
+"""Run Loyalty migrations safely.
+
+Phase 7.0's 0001_initial uses Base.metadata.create_all(), which creates the
+*current* ORM schema (including later phase columns/tables). Additive
+revisions 0002+ would then fail with DuplicateColumn/DuplicateTable on a
+fresh DB. After 0001, stamp head so the DB matches the model tree.
+Future phases must ship real additive migrations and stop relying on
+create_all in 0001.
+"""
+from __future__ import annotations
+
+from alembic import command
+from alembic.config import Config
+from alembic.script import ScriptDirectory
+from alembic.runtime.migration import MigrationContext
+from sqlalchemy import create_engine
+
+
+def main() -> None:
+    cfg = Config("alembic.ini")
+    command.upgrade(cfg, "0001_initial")
+
+    # If already at head somehow, upgrade is a no-op; otherwise stamp past
+    # additive revisions that are already embodied by create_all.
+    sync_url = None
+    try:
+        from app.core.config import settings
+
+        sync_url = settings.database_url_sync
+    except Exception:
+        pass
+
+    head = ScriptDirectory.from_config(cfg).get_current_head()
+    if sync_url:
+        engine = create_engine(sync_url)
+        with engine.connect() as conn:
+            ctx = MigrationContext.configure(conn)
+            current = ctx.get_current_revision()
+        if current != head:
+            print(f"Stamping alembic from {current!r} -> {head!r} after create_all")
+            command.stamp(cfg, "head")
+        else:
+            print(f"Already at head {head}")
+    else:
+        command.stamp(cfg, "head")
+        print(f"Stamped head {head}")
+
+
+if __name__ == "__main__":
+    main()
diff --git a/docker-compose.yml b/docker-compose.yml
index 27c6b3a..310b7f0 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -216,8 +216,8 @@ services:
     env_file:
       - .env
     environment:
-      LOYALTY_DATABASE_URL: ${LOYALTY_DATABASE_URL}
-      LOYALTY_DATABASE_URL_SYNC: ${LOYALTY_DATABASE_URL_SYNC}
+      LOYALTY_DATABASE_URL: ${LOYALTY_DATABASE_URL:-postgresql+asyncpg://superapp:superapp_password@postgres:5432/loyalty_db}
+      LOYALTY_DATABASE_URL_SYNC: ${LOYALTY_DATABASE_URL_SYNC:-postgresql+psycopg://superapp:superapp_password@postgres:5432/loyalty_db}
       CORE_SERVICE_URL: ${CORE_SERVICE_URL:-http://core-service:8000}
       CORS_ORIGINS: ${CORS_ORIGINS:-http://localhost:3000}
       AUTH_REQUIRED: ${AUTH_REQUIRED:-true}
@@ -237,7 +237,7 @@ services:
         condition: service_started
     command: >
       sh -c "python scripts/ensure_db.py &&
-             alembic upgrade head &&
+             python scripts/run_migrations.py &&
              uvicorn app.main:app --host 0.0.0.0 --port 8004 --reload"
     networks:
       - superapp_net