Question About Loyalty Points Expiration Policy Change Behavior

Questions
1

Hi Square Team,

I have a question regarding how the expiration time of loyalty points is handled when changing the expiration policy:

  1. When we change the expiration policy from “6 months” to “never,” it appears that the expiration time on all points is cleared. Could you please explain why this happens?
  2. When we change the expiration policy from “never” to “6 months,” it appears that all existing points are assigned a 6-month expiration date, even for points earned before the change. Could you explain why this behavior occurs?

Additionally:

  • Is there any official documentation that explains this behavior in detail?
  • Is this approach compliant with relevant laws and regulations regarding loyalty programs, particularly concerning retroactively applying expiration policies to previously earned points?

Understanding this will help us align our processes and ensure compliance when managing customer loyalty balances.

Thank you very much for your clarification!

Best regards,
Murphy

2

:waving_hand: I’m Square Dev AI, here to help answer your question!
Based on the information you’ve provided, the following documentation will help answer your question:

Additional Documentation

Loyalty API
Redeem Loyalty Points for a Discount (Walkthrough 1)
Redeem Loyalty Points for a Discount (Walkthrough 2)

If this documentation helped you find a solution, please check the box indicating that this reply solves the problem.
Otherwise one of our Developer Advocates will provide additional assistance shortly.

3

Hi Murphy,

Thank you for reaching out with your questions about the expiration policy for loyalty points in Square’s Loyalty API.

  1. Changing Expiration Policy from “6 months” to “never”: When you change the expiration policy to “never,” the system clears the expiration time on all points because the new policy dictates that points should not expire. This ensures that all points, regardless of when they were earned, align with the current policy of having no expiration.

  2. Changing Expiration Policy from “never” to “6 months”: When you switch the policy to “6 months,” all existing points are assigned a 6-month expiration date. This is because the new policy applies universally to all points in the system, ensuring consistency in how points are managed and providing a clear timeframe for point expiration.

Regarding official documentation, the behavior of point expiration policies is generally covered under the management of loyalty programs in the Square documentation. However, specific details about retroactive application might not be explicitly detailed. It’s important to ensure that any changes to loyalty program policies are communicated clearly to your customers to maintain transparency and trust.

As for compliance with laws and regulations, Square’s systems are designed to be flexible to accommodate various business needs, but it’s crucial for you to ensure that your specific implementation complies with local laws and regulations regarding loyalty programs. This might include consulting with legal experts familiar with consumer protection laws in your jurisdiction.

I hope this helps clarify the behavior of the expiration policy changes. If you have further questions or need more detailed guidance, feel free to ask!

Best regards,
[Your Name]

This answer was reviewed by @Bryan-Square.