# Mastercard Digital Redemptions source: https://developer.mastercard.com/digital-redemptions/product/mastercard-digital-redemptions/index.md ### Benefits {#benefits} Mastercard Digital Redemptions is a single API that connects online merchants to bank and card issuer rewards programs so cardholders can pay with reward points at checkout. Issuers increase cardholder engagement and burn down points liability; merchants gain a frictionless checkout, a new payment option, and automated point refunds when an order is cancelled or returned. The same API powers [Pay with Points](https://developer.mastercard.com/digital-redemptions/product/pay-with-points/index.md), the merchant-hosted checkout experience. * **Issuers** increase card usage and program engagement by letting cardholders redeem points at the merchants they already shop with. * **Merchants** convert more checkouts and lift basket size by accepting points as a payment option with no change to their payment processor. * **Consumers** see their points balance and its cash value at checkout and pay with points, or points plus card, in a single step. ![Boost Engagement](https://static.developer.mastercard.com/content/digital-redemptions/uploads/boost_engagement.svg) ###### Boost engagement {#boost-engagement} Increases cardholder engagement by enhancing the range, quality, and redemption speed of rewards ![Grow Spend](https://static.developer.mastercard.com/content/digital-redemptions/uploads/grow_spend.svg) ###### Increase checkout spend with points-based payments {#increase-checkout-spend-with-points-based-payments} Drives greater spend via digital wallets and e-commerce by providing a frictionless digital checkout process ![Differentiate Offerings](https://static.developer.mastercard.com/content/digital-redemptions/uploads/differentiate_offerings.svg) ###### Differentiate offerings {#differentiate-offerings} Connects consumers to popular merchants and future-facing redemption categories *** ** * ** *** ### How It Works {#how-it-works} A consumer reaches checkout and enters an eligible card. The merchant or issuer calls the Digital Redemptions APIs with the card identifier to check eligibility and retrieve the points balance and its cash value. The consumer chooses to pay with points, or points plus card, and the merchant or issuer calls the APIs to record the redemption. Mastercard Rewards deducts the points and returns a redemption ID; if the order is later cancelled, the same ID is used to credit the points back. ###### Merchant hosted {#merchant-hosted} The consumer shops on the merchant website or app. At checkout the merchant detects an eligible card, retrieves the points balance from Digital Redemptions, shows it alongside the cash price, and submits the redemption when the consumer chooses to pay with points. ![Merchant hosted flow: consumer enters card at merchant checkout, merchant retrieves points balance and submits redemption to Mastercard Digital Redemptions](https://static.developer.mastercard.com/content/digital-redemptions/uploads/merchant-hosted-plp.png) ###### Partner hosted {#partner-hosted} The consumer signs in to the issuer's rewards website and is redirected to the merchant through single sign-on. The issuer or partner retrieves the points balance from Digital Redemptions, the consumer selects items on the merchant site, and the partner submits the redemption so the points are deducted and the order is confirmed. ![Partner hosted flow: consumer signs in to issuer rewards site, is redirected to merchant by SSO, and the partner submits the redemption to Mastercard Digital Redemptions](https://static.developer.mastercard.com/content/digital-redemptions/uploads/partner-hosted-plp.png) *** ** * ** *** ### Use cases {#use-cases} ![Redeem Points](https://static.developer.mastercard.com/content/digital-redemptions/uploads/redeem_points.svg) ###### Redeem points at a merchant {#redeem-points-at-a-merchant} Link from a customer-hosted or partner experience to redeem points at select merchants ![Integrate](https://static.developer.mastercard.com/content/digital-redemptions/uploads/integrate.svg) ###### Pay with points inside a merchant's checkout {#pay-with-points-inside-a-merchants-checkout} A cardholder enters an eligible card at a merchant checkout and pays some or all of the order with points without leaving the merchant site ![Data Access](https://static.developer.mastercard.com/content/digital-redemptions/uploads/data_access.svg) ###### Show the points balance and refund points after a return {#show-the-points-balance-and-refund-points-after-a-return} A merchant displays a cardholder's points balance and cash value at checkout, then credits the points back when the cardholder returns or cancels the order ![Customer Service](https://static.developer.mastercard.com/content/digital-redemptions/uploads/customer_service.svg) ###### Customer service requests {#customer-service-requests} A consumer can request a cancellation which notifies the customer to refund the points ![Customize](https://static.developer.mastercard.com/content/digital-redemptions/uploads/customize.svg) ###### Brand the checkout for the cardholder's program {#brand-the-checkout-for-the-cardholders-program} A merchant shows the cardholder's program name, points name, and balance on its own checkout so the redemption feels like part of the issuer's rewards program We have the largest global footprint in loyalty through end to end services powered by the fastest and most secure processing network in the world. [Learn more](https://developer.mastercard.com/success-stories/digital-redemptions/) about how Mastercard Digital Redemptions enabled new loyalty solutions for a credit card program from Synchrony. *** ** * ** *** ### Refund points automatically when a customer cancels {#refund-points-automatically-when-a-customer-cancels} When a customer cancels or returns an order that was paid with points, the merchant needs to give the points back without raising a support ticket or reconciling manually with the bank. Digital Redemptions handles this with one API call. ###### The problem {#the-problem} A cancelled order paid with points leaves the cardholder out of pocket and the merchant holding a liability it cannot settle through its card processor. ###### The outcome {#the-outcome} The cardholder sees the points back in their rewards account immediately, in their original aging status. Mastercard reconciles the cost between the issuer program and the merchant. ###### The API {#the-api} Call `POST /redemptions/{id}/credits` with the original redemption ID for a full refund, or add `partialCreditPoints` for a partial return. See the [Reverse Redemption](https://developer.mastercard.com/digital-redemptions/documentation/use-cases/redemptions/reverse-redemption/index.md) use case. *** ** * ** *** ### Frequently asked questions {#frequently-asked-questions} When the cardholder enters their card number, call `POST /redeemers/search` to check eligibility and retrieve the points balance, display the balance and its currency value, then call `POST /redemptions` when the cardholder chooses to pay with points. Charge any remaining amount to the card as normal. Follow the [Integrate Pay with Points Into Your Ecommerce Checkout](https://developer.mastercard.com/digital-redemptions/documentation/tutorials-and-guides/integrate-pay-with-points-checkout/index.md) guide. The issuer's rewards portal hands the cardholder to a participating merchant through single sign-on (SSO). The merchant retrieves the cardholder's points balance with the Redeemers Profile API, prices items in points and currency, and completes the purchase with `POST /redemptions`. Follow the [Let Cardholders Redeem Points From Your Issuer Rewards Website](https://developer.mastercard.com/digital-redemptions/documentation/tutorials-and-guides/issuer-rewards-website-sso/index.md) guide. The merchant calls `POST /redemptions/{id}/credits` and the points are credited back to the cardholder's rewards account immediately. Partial returns are supported with `partialCreditPoints`. Mastercard reconciles the refund cost between the issuer program and the merchant. The cardholder never leaves the merchant checkout or the issuer rewards site. There is no voucher to generate, no separate login, and no wait for a statement credit; points are applied in real time and the remaining balance goes on the card. Mastercard manages a large number of issuer rewards programs globally, with billions of reward points available for redemption. One integration gives access to every participating program; issuers opt in per merchant. See [Support](https://developer.mastercard.com/digital-redemptions/documentation/support/index.md) for details. *** ** * ** *** ### Create a best-in-class Digital Redemptions experience with Experience Design Guide
This guide provides Merchants with the cutting edge resources needed to effectively implement Mastercard Digital Redemptions faster, easier, and for less. Find Figma end-to-end journeys for each use case including API callouts, and more. [View Experience Design Guide](https://developer.mastercard.com/digital-redemptions/documentation/experience-design-guide/) ![](https://static.developer.mastercard.com/content/digital-redemptions/uploads/plp-edge.png) *** ** * ** *** ### Why use it {#why-use-it} The ability to redeem points seamlessly at checkout will drive customer engagement and spend. ### 38% of consumers spend more during a redemption transaction compared to their previous non-redeeming purchase The Stats are Clear - You Need a Points Based Loyalty Program, Coniq 2020 ### 54% of consumers increase their spending in their next transaction after redeeming points The Stats are Clear - You Need a Points Based Loyalty Program, Coniq 2020 ### 60% of consumers say instant discounts are a key motivator for joining loyalty programs 2021 Loyalty Industry Data Study Insights, Clarus Commerce *** ** * ** *** ### Resources {#resources} Digital Redemptions for Digital Merchants Let cardholders pay with bank reward points at your online checkout or from an issuer rewards website: check eligibility, show the points balance, redeem points, and refund them on cancellation *** ** * ** *** **Used By** Digital Merchants **Regions** Global **Supports** ![mastercard card](https://developer.mastercard.com/img/card_mastercard.svg)![visa card](https://developer.mastercard.com/img/card_visa.svg) Merchant integrating into your own checkout? Start with [Pay with Points](https://developer.mastercard.com/digital-redemptions/product/pay-with-points/index.md). Issuer or merchant looking for the API details? Go to the [Documentation](https://developer.mastercard.com/digital-redemptions/documentation/index.md). *** ** * ** ***