Points withholding is a core feature that adds a security layer to your loyalty program by creating a waiting period between when members earn points and when they can use them. Think of it as a "pending period" for points.
How It Works
When a member makes a purchase:
Points are earned immediately but marked as "pending"
Points remain in this state for your specified holding period
After the holding period expires, points automatically become available for use
Why Use Point Withholding?
Protects Against Fraud: Gives time to verify transactions are legitimate
Handles Returns: Prevents point usage before potential return periods end
Better Control: Helps manage your loyalty program more effectively
Case Study: Electronics Store Implementation
An electronics retailer with high-value purchases implemented a 30-day point withholding strategy. Here's how they did it:
Set initial withholding period to match their return policy (30 days)
Communicated clearly to customers through email and app notifications about pending points and period where points earned will be released and available for use