Redeeming Loyalty Points at the POS

When customers have accumulated enough loyalty points, they can redeem those points for a discount on their current purchase directly at the Point of Sale. This guide walks through the complete redemption process step by step, explains how loyalty redemption interacts with promotions and coupons through stacking rules, and covers the safeguards that protect both the customer and the business.

Redemption Flow During a Sale

The loyalty redemption process takes place during the checkout workflow, after items have been added to the invoice and before the final payment is processed. Follow these steps:

Step 1: Attach the Customer to the Invoice

Before loyalty points can be redeemed, the customer must be attached to the invoice. This is the same requirement as earning points — the system needs to know which loyalty account to work with.

• Search for the customer by name, phone number, or customer ID using the customer lookup on the POS screen.
• Select the correct customer from the search results.
• Once attached, the customer's name appears on the invoice header.

If no customer is attached, the Loyalty button will be disabled or hidden, depending on your POS configuration.

Step 2: Click the Loyalty Button

With the customer attached and items on the invoice, click the Loyalty button on the POS screen. This button is located in the action bar alongside other payment-related functions.

Clicking the Loyalty button opens the loyalty redemption panel, which displays the customer's loyalty account information.

Step 3: Review the Available Point Balance

The loyalty redemption panel displays the customer's current point balance prominently at the top:

• Available points — The total number of points in the customer's account that are available for redemption.
• Dollar value — The equivalent dollar value of the available points, calculated using the Redemption Value Per Point setting. For example, if the customer has 500 points and each point is worth $0.01, the display shows 500 points = $5.00.
• Current tier — The customer's loyalty tier (Bronze, Silver, Gold, or Platinum) is displayed for the cashier's reference.

This information helps the cashier communicate the customer's options clearly.

Step 4: Enter the Number of Points to Redeem

The cashier (or the customer, if using a customer-facing display) enters the number of points to redeem in the redemption field:

• The number of points entered must be at least the Minimum Points to Redeem threshold configured in the loyalty settings. If the customer enters fewer points than the minimum, the system displays an error and does not proceed.
• The number of points entered cannot exceed the customer's available balance. If the customer tries to redeem more points than they have, the system rejects the entry.
• The number of points entered cannot exceed the Maximum Redemption Per Transaction cap. If the customer wants to redeem more than the cap allows, the system limits the entry to the maximum.
• As the cashier types or adjusts the point amount, the dollar value of the discount updates in real time so both the cashier and the customer can see exactly how much the discount will be.

Step 5: System Calculates the Dollar Discount

Once the number of points is entered, the system calculates the dollar discount by multiplying the points by the Redemption Value Per Point:

• For example, redeeming 200 points at $0.01 per point produces a $2.00 discount.
• Redeeming 500 points at $0.02 per point produces a $10.00 discount.
• The calculated discount is displayed clearly before the cashier confirms, ensuring there are no surprises.

Step 6: Discount Is Applied to the Invoice

After confirming the redemption, the discount is applied to the invoice as a loyalty discount line:

• The invoice shows a line item labeled as a loyalty point redemption, with the discount amount.
• The invoice total is reduced by the discount amount.
• The redeemed points are deducted from the customer's loyalty balance immediately.
• The cashier proceeds to the payment screen to collect the remaining balance using any available payment method (cash, card, gift card, etc.).

Stacking with Promotions

Whether loyalty redemption can be used alongside automatic promotions is controlled by the AllowLoyaltyWithPromotion setting in the Stacking Rules configuration:

• When ON — Loyalty redemption can be used alongside automatic promotions on the same invoice. For example, a customer can benefit from a 10% off storewide promotion and also redeem 200 loyalty points for an additional $2.00 discount on the same transaction. Both discounts apply independently.
• When OFF — The customer must choose between the promotion discount and the loyalty redemption. If an automatic promotion has already been applied to the invoice, the loyalty redemption option is blocked. Conversely, if the customer redeems loyalty points first, automatic promotions will not apply. The system presents a clear message to the cashier explaining the restriction so they can communicate the options to the customer.

The AllowLoyaltyWithPromotion setting is configured under Marketing > Promotions > Stacking Rules. See the Stacking Rules article for more details on how stacking is configured across all discount types.

Stacking with Coupons

Whether loyalty redemption can be combined with a coupon code is controlled by the AllowLoyaltyWithCoupon setting in the Stacking Rules configuration:

• When ON — Loyalty redemption can be used alongside a coupon on the same invoice. The customer can present a coupon code for a discount and also redeem loyalty points for an additional discount, both on the same transaction.
• When OFF — The customer must choose one or the other. If a coupon has already been applied, loyalty redemption is blocked. If loyalty points have been redeemed first, coupon entry is blocked. The cashier sees a message explaining the restriction.

The AllowLoyaltyWithCoupon setting is configured under Marketing > Promotions > Stacking Rules, alongside the promotion stacking setting.

Invoice Floor Protection

Regardless of the number of points redeemed or the combination of discounts applied, the invoice total will never go below $0.00:

• If the loyalty discount would reduce the invoice below zero, the system automatically caps the discount at the invoice total. For example, if the invoice total is $3.00 and the customer attempts to redeem $5.00 worth of points, only $3.00 worth of points are actually deducted, and the invoice total becomes $0.00.
• The remaining points that were not used are kept in the customer's loyalty account for future visits.
• This protection ensures that loyalty redemption never results in the business owing money to the customer on a sale.

Remaining Points

After a redemption, the customer keeps any unredeemed points in their loyalty account:

• If the customer has 500 points and redeems 200, they retain 300 points for future purchases.
• If the customer's redemption was capped by the Maximum Redemption Per Transaction setting or the invoice floor, the unused points remain in their account.
• The cashier should inform the customer of their remaining balance after the redemption. The updated balance is displayed on the POS screen after the discount is applied and is also printed on the receipt if loyalty information is included in your receipt template.
• Points do not expire based on inactivity by default, though expiration policies can be configured by the business if desired.

Tips for Cashiers

• Always attach the customer first — The Loyalty button only works when a customer is linked to the invoice. Make customer attachment part of your standard checkout routine.
• Communicate the value clearly — Tell the customer how many points they have, what those points are worth in dollars, and how many points they need to reach the next tier. This reinforces the value of the loyalty program.
• Explain stacking restrictions — If stacking is disabled and the customer has both a coupon and loyalty points, explain the options so the customer can choose the better deal. Run a quick comparison if the customer is unsure.
• Check the minimum — If a customer asks to redeem points but has not yet reached the minimum threshold, let them know how many more points they need. This encourages them to return for another purchase.
• Mention tier progress — If a customer is close to the next tier (for example, 50 points away from Silver), mention it. This can motivate an additional purchase or create a positive interaction.

What to Read Next

• Loyalty Program Settings and Configuration — Full reference for all loyalty configuration fields including thresholds, rates, and behavioral settings.
• Loyalty Points Earning and Tiers — Details on the tier structure, multipliers, manual adjustments, and refund clawback.