How to Set Up Ways to Redeem

Ways to Redeem lets you create offers where customers can exchange their accumulated Bitcoin rewards for discounts on future purchases. When customers redeem, your rewards balance is replenished — creating a closed-loop system.

How the Multiplier Works

Without Ways to Redeem, customers earn Bitcoin rewards they can save or cash out — value that leaves your ecosystem. The multiplier makes those rewards worth significantly more when redeemed at your store, turning them into a cash-back model that drives repeat purchases.

For example, if you give customers 1% back in Bitcoin and set an effective discount rate of 10%, that creates a 10x multiplier. A customer who earned $1 in rewards from a $100 purchase could cash that out for $1 — or redeem it at your store for $10 off their next order. When they redeem, the sats flow back into your rewards balance.

The higher the multiplier, the stronger the incentive. A 10x multiplier at a 1% reward rate is a good starting point for most businesses.

Steps

Step 1: Navigate to Ways to Redeem

From your merchant dashboard, go to Loyalty Program and select the Ways to Redeem tab.

Step 2: Set Your Business Parameters

Enter two values that reflect your business economics:

• Average Order Value (AOV) — Your typical order amount (e.g., $50). Used to calculate appropriate redemption tiers.
• Profit Margin (%) — Your average profit margin (e.g., 30%). Used to generate a financial breakdown for each tier showing customer spend, coupon discount, net spend, total profit, and profit margin — so you can verify the offers make sense for your bottom line.

Next, choose an Effective Discount Rate — this determines the multiplier and how much value customers receive when they redeem:

• Quick options: 5%, 10% (recommended), or 15%
• Or click Custom to enter any percentage

Step 3: Generate and Save Offers

Click Generate Offers (or Generate Tiers for Square). This creates tiered redemption offers based on your parameters.

Review the generated offers in the table below. Each row shows a tier's dollar value, the sats required to redeem, and the USD equivalent. You can edit individual offers directly in the table.

When everything looks right, click Save Changes. Then confirm the program status shows Active at the bottom of the page.

Optional Configuration

• Custom Discount Rate — Set any effective discount percentage beyond the 5%, 10%, and 15% presets.
• Square Store Credit — With Square connected, offers appear as store credit tiers. Customers redeem sats for fixed dollar amounts applied to their next purchase.
• Email Preview — The right side of the page shows a preview of the redemption email customers receive.

How Redemptions Keep Your Program Self-Sustaining

When customers withdraw their Bitcoin rewards, those sats leave your ecosystem permanently. But when they redeem at your store, the sats flow back into your merchant rewards balance — meaning those same rewards can be earned by future customers.

This creates a closed loop: customers earn rewards, redeem them for store credit or discounts, make another purchase, and earn more rewards. Each redemption replenishes your balance while driving another visit and another sale. Over time, this significantly reduces the ongoing cost of running your rewards program because you're not constantly funding new rewards from scratch.

The multiplier is what makes this work. By offering customers significantly more value when they redeem at your store, most customers naturally choose to redeem rather than withdraw. You keep the program open and trustworthy — customers always have the option to withdraw — but the economics strongly favor coming back to you.

What's Next

• Set up purchase rewards — Your purchase reward rate directly determines the multiplier for redemptions.
• Fund your rewards balance and set up auto recharge to keep your program funded.
• Set up a lock-up period to control when customers can redeem after earning rewards.