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⏳ Setting an expiration date for unspent points in your loyalty program

Set points lifetime in Welcome Back to boost redemptions, motivate your customers, and reduce future financial risk.

Cristian Rodriguez avatar
Written by Cristian Rodriguez
Updated over a week ago

🎯 What is Points Lifetime?

In Welcome Back, you can define an expiration period for the points your customers earn. This means that after a certain number of days (e.g., 30, 90, or 365), unused points will automatically expire.

This feature helps you encourage faster engagement, reduce long-term financial liability, and launch limited-time campaigns that drive results.


🔄 How Points Expiration Works (FIFO)

Welcome Back uses a First In, First Out (FIFO) system to handle point expirations fairly. This means:

> Points earned first are used first when customers redeem rewards.

Simple Example

Day

Action

Points Earned

Points Used

Balance

1

Customer earns

100 pts

100

15

Customer earns

50 pts

150

20

Customer redeems

80 pts

70

31

Day 1 points expire

50

What happens on Day 31?

With FIFO, the 80-point redemption on Day 20 consumed points from Day 1 first (the oldest). So:

  • Day 1: 100 earned → 80 used → 20 remaining → expires

  • Day 15: 50 earned → untouched → 50 remaining

Final balance after expiration: 50 points

The customer keeps the 50 points from Day 15 because those weren't due to expire

yet.

Key Takeaways

Used points never expire — Once redeemed, those points are gone and won't be "expired again"

Oldest points are used first — Redemptions automatically consume the oldest points

Only truly unused points expire — The system calculates exactly what remains unconsumed


✅ Benefits of Setting Points Lifetime

📈 Boosts redemption activity

When customers know their points will expire, they're more likely to use them on time — driving traffic and increasing sales.

💸 Keeps liabilities under control

Points are a future cost. Letting them expire helps reduce the financial burden of unused rewards on your balance sheet.

📅 Enables time-based campaigns

Great for seasonal promotions or limited-time loyalty offers. You can encourage quick action by tying points to deadlines.

🎯 Reinforces repeat behavior

With limited time to redeem, customers are motivated to come back more often and stay engaged with your brand.


⚠️ Things to Consider Before Activating Expiration

🙈 Customers may get frustrated if not informed

If users don't know their points will expire, they might feel disappointed. Be sure to communicate expiration dates clearly through emails, push notifications, and wallet messages.

🤝 Balance urgency with fairness

If the expiration window is too short, it can backfire. Give customers enough time to earn and redeem points comfortably.

📊 FIFO protects your customers

Remember: the system is fair. Customers who actively use their points won't lose value — only truly unused points expire.


🛠️ How to Set Points Lifetime in Welcome Back

  1. Go to the Passes page and select a pass whose details you want to edit

  2. Click Edit

  3. Find the "Points Lifetime" or "Cashback Lifetime" option

  4. Set how many days the points will remain valid from the moment they are issued (e.g., 30, 90, or 365 days)

  5. Save your changes — all points issued under that campaign will automatically follow this rule


💡 Best Practices

Recommendation

Why

Start with at least 90 days

Gives customers a fair chance to earn and redeem

Communicate clearly

Let customers know about FIFO — they'll appreciate the fairness


❓ Frequently Asked Questions

Q: If I redeem points, do they still expire?

> No. Once you use points, they're consumed and removed from your balance. Only unused points can expire.

Q: Which points expire first?

> The oldest unused points expire first. If you earned points on January 1st and January 15th, and only January 1st points have reached their lifetime, only those will be evaluated for expiration.

Q: What if I used some points from an earning?

> Only the remaining unused portion can expire. For example, if you earned 100 points and used 60, only 40 points can expire from that earning.

Q: Does expiration affect my entire balance at once?

> No. Each earning has its own expiration date based on when it was issued. Points expire individually based on their age.


🟠 With Welcome Back, You're in Control

Setting a points lifetime is a smart strategy to keep your loyalty program lean, engaging, and aligned with your business goals.

The FIFO system ensures fairness — your most engaged customers are protected, while inactive points are cleaned up automatically.


👉 Ready to set it up? Not sure what duration is best for your campaign?

Our team is here to help — just reach out!

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