> ## Documentation Index
> Fetch the complete documentation index at: https://help.smile.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Understand fixed and incremental rewards

> Learn about discount reward options and how customers spend points on fixed and incremental rewards.

Discount rewards let customers redeem points for a discount coupon at your store. When configuring discounts, you can choose between a reward with a **Fixed amount of points** or one that uses **Increments of points.** Understanding the difference between these options will help you set up a program that works best for your store and customers.

<Tip>
  **Tip:** If you're looking to create a new way for customers to redeem points, check out our article on [configuring ways to redeem points](/en/articles/4036271-configure-ways-to-redeem-points).
</Tip>

## Fixed amount of points

A reward with a **Fixed amount of points** has a set discount and points cost. Fixed rewards can be set up for both online and POS rewards.

For example: A **\$5 off** reward that costs **500 points**.

With this option, customers can't change the number of points used or the discount value—they redeem the exact amount set.

<Note>
  **Note:** The discount value for a fixed reward can include up to two decimal places (e.g. \$4.50 off for 450 points).
</Note>

## Increments of Points

A reward using **Increments of points** allows customers to choose how many points they redeem based on a sliding scale you configure.  Incremental rewards can only be used as online rewards and aren't currently an option for POS rewards.

For example, you might offer **\$1 off for every 100 points spent**.

In this case:

* A customer with 512 points could choose to redeem **500 points** for a **\$5** discount.
* Or, they could choose to redeem **300 points** for a **\$3** discount.

This option gives customers the flexibility to choose the reward value they want.

**Recommendation:** When creating an incremental reward, set both a **minimum number of points** required to redeem it and a **maximum number of points** customers can spend. This helps you maintain full control over reward customization and protect your margins.

<Note>
  **Note**: When setting up an incremental reward, both the reward value per increment (e.g. \$1) and the points step (e.g. 100 points) must be whole numbers — decimal values aren't supported. Incremental rewards are also rounded to the nearest 100 points at the time of redemption.
</Note>