How Are Service Credits Redeemed?

Once service credits have been earned for a membership, how may a customer redeem these credits? The method by which the credits are redeemed depends on the business rules for the program you are offering. Here are some examples of how a service credit may be redeemed:

• For free pay-per-view movies, perhaps your customer's monthly cable bill is credited for any pay-per-view movies until all free movies are used. Refer to Service Credits Redeemed Through Billing for more information.
• For frequent flier miles, the information about the earned miles is exported to the appropriate airline. The miles are actually redeemed by the customer through the airline, not through your company. Refer to Interface Membership Information to a Third Party for more information.
• For a capital credit membership, the company periodically (maybe once a year) decides if credits should be redeemed (referred to as "retired") and if so, how much. The company runs a background process to calculate the "retirement" amount. When an amount is retired, the membership balance is reduced by the retirement amount and the amount is transferred to service agreements related to the membership. Refer to Capital Credit Retirement for more information.

Each service credit amount redeemed through the system is linked to the membership via a service credit event.