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About Selling Loyalty Points to Partners

Partners must purchase points from the host company, so they can give those points to members who make purchases from them.

When a partner submits a transaction that earns points for a member, those points are deducted from the point balance for that partner (calculated by the partner account debit conversion rate), as tracked by point blocks. If the partner does not have enough points to give to the member, then the transaction is rejected.

The host company charges points to the partners in two ways:

• Prepaid. The partners buy point blocks before members earn the points. A point block representing the amount of points purchased is created and activated. When a partner's prepurchased point balance is low, the host company sells additional points to the partner. If the host company wants to prevent members' transactions from being rejected if the partner mistakenly fails to purchase additional points in time, then the host company can create and activate a reserve point block that is only used if the prepurchased point block runs out of points. If the reserve point block is used, then the host company charges the partner for these points as well as for another large point block. The host company can also set up auto-creation of point blocks for prepaid members, as described in Setting Up Auto-Creation of Point Blocks, so a new point block is created automatically when the existing point block runs out of points.
• Post-Paid. The partner pays for points only after the points have been given to members. The host company bills the partner after the points are used. For example if the partner is billed on a monthly basis, then the partner would be charged only for the points that it gave to members since the last billing.

For prepaid partners, the partner manager can view the information for the partner in the Point Block Purchases view of the Partners screen. The partner manager changes the status of the point block to approved in order to make the points available.

The Point Block view also lists all previous blocks of points that the partner has purchased, so the host company can also use it to view the partner's point purchasing history.

Related Topics

Selling Points to Prepaid Partners

Selling Points to Post-Paid Partners