What is points redemption?

Points redemption occurs when a person redeems the points on his credit card or merchant card for merchandise, travel or other products. Many credit cards, hotels, airlines and stores have point cards.

Point cards are popular with credit card companies as an incentive for customers to use their cards for more purchases and to increase loyalty. Stores also use point or loyalty cards to entice their customers to shop more to receive benefits. How customers can redeem their points varies. To redeem points, the customer must visit the website for the company that issued him the points and follow the company’s suggested procedures for redeeming them.