# Pay with Rewards
source: https://developer.mastercard.com/pay-with-rewards/documentation/index.md

## Overview {#overview}

Pay with Rewards lets cardholders spend rewards points like cash at millions of locations, online or in-store. The seamless, card-linked solution helps issuers and merchants offer their consumers instant gratification and more flexibility when it comes to using their points. Our APIs create the Pay with Rewards user experience, and can be used inside a banking app or other mobile apps.
Note: The Mastercard Pay with Rewards product page can be found [here](https://developer.mastercard.com/product/mastercard-pay-with-rewards).

## How it Works {#how-it-works}

Three integration models are available for Pay with Rewards depending on connectivity to the client's points system and desired technical approach.

### Model 1: Mastercard Point Bank {#model-1-mastercard-point-bank}

Mastercard hosts the client's rewards program and is responsible for redemptions and rebates. No additional back-end integration is required.

![Mastercard Points Bank Integration Model](https://static.developer.mastercard.com/content/pay-with-rewards/img/pwr_MC_points_bank_Integration_Model.jpg)

### Model 2: External point bank, Mastercard API {#model-2-external-point-bank-mastercard-api}

In this model, the client is responsible for performing balance lookup and point redemption activities based on the PWR Auth Notifier call to their system.

![External points bank - Mastercard API Integration Model](https://static.developer.mastercard.com/content/pay-with-rewards/img/pwr_external_points_bank_MC_API_Integration_Model.jpg)

### Model 3: External points bank, Client API {#model-3-external-points-bank-client-api}

Pay with Rewards consumes the client's APIs to retrieve point balance and redeem points. This integration works well for a client that uses an external provider to manage the loyalty program. The client's mobile app will consume Pay with Rewards APIs to create the front-end.

![External points bank - Client API Integration Model](https://static.developer.mastercard.com/content/pay-with-rewards/img/pwr_external_points_bank_Integration_Model.jpg)

The Pay with Rewards engine contains six primary areas of logic. Click each one for further details.

1. [Authorization Processing](https://developer.mastercard.com/pay-with-rewards/documentation/api-basics/index.md#1-authorization-processing)
2. [Program Rules and Filters](https://developer.mastercard.com/pay-with-rewards/documentation/api-basics/index.md#2-program-rules-and-filters)
3. [Cardholder Preferences](https://developer.mastercard.com/pay-with-rewards/documentation/api-basics/index.md#3-cardholder-preferences)
4. [Conversion Rules](https://developer.mastercard.com/pay-with-rewards/documentation/api-basics/index.md#4-conversion-rules)
5. [Rewards Redemption/Points Processing](https://developer.mastercard.com/pay-with-rewards/documentation/api-basics/index.md#5-rewards-redemptionpoints-processing)
6. [Communications and Alerts](https://developer.mastercard.com/pay-with-rewards/documentation/api-basics/index.md#6-communications-and-alerts)

## Good to Know {#good-to-know}

1. Refer the [Glossary of Terms](https://developer.mastercard.com/pay-with-rewards/documentation/glossary/index.md) to know about the cardholder identifiers.
2. We have created a [Reference Application](https://developer.mastercard.com/pay-with-rewards/documentation/reference-app/index.md) to get you started.
3. Refer to the [Use Cases](https://developer.mastercard.com/pay-with-rewards/documentation/use-cases/index.md) for additional details on how the API works.
4. Refer to the [Quick Start Guide](https://developer.mastercard.com/pay-with-rewards/documentation/quick-start-guide/index.md) for additional guidance.

Tip: If you don't have a Mastercard representative, reach out for help from the [support page](https://developer.mastercard.com/pay-with-rewards/documentation/support/index.md#get-help).

## Next Steps {#next-steps}

Now that you have an understanding of what the service does, proceed to the [API Basics](https://developer.mastercard.com/pay-with-rewards/documentation/api-basics/index.md#1-authorization-processing) section for details on authentication and environment details.