Decisions · Layer 1
Should you offer points plus cash redemption
Offer points plus cash when it unlocks useful redemptions without obscuring point value or funding responsibility. Show both contributions and refund treatment.
Offer points plus cash when it unlocks useful redemptions without obscuring point value or funding responsibility. Show both contributions and refund treatment.
## The decision boundary Points plus cash combines programme currency with payment for one redemption. The design must identify who sets price, who funds points, and what happens on cancellation.
## The options ### Fixed contribution Choose this when point and cash portions can remain stable. The cost is additional operating complexity. ### Dynamic contribution Choose this when supply or fulfilment cost varies. The cost is more measurement and exception handling. ### Member-selected split Choose this when choice is valuable and every split can be priced safely. The cost is a stronger funding and review obligation.
## What it costs you The currency is liability, margin, engineering time, operating capacity, or member trust. In a hypothetical illustration, 2 points per dollar on 400 dollars of spend creates 800 points. At a hypothetical 1 cent value, that is 8 dollars of liability. Ten comparable cases therefore represent 80 dollars of stated value.
## How to decide 1. Name the behaviour or obligation the rule must control. 2. Identify the independent evidence that proves the event. 3. Price the member, operating, and liability cost of each option. 4. Choose the least complex control that protects the least reversible outcome. 5. Set the evidence that would cause a later review.
## What breaks The failure mode is a rule that measures its own success. Keep source evidence, eligibility, issuance, adjustment, and fulfilment separately observable. Revisit the recommendation when the balance has no meaningful value or the event cannot be independently verified.