Membership Credits Explained
Credits are the heart of your membership program—they’re what members receive each billing cycle and redeem for services. This guide explains exactly how credits work: when they’re issued, when they expire, and what happens when they roll over.
✨ Best for:
Staff who need to understand credit mechanics, managers setting up rollover policies, or anyone troubleshooting credit questions.
How Credits Work: The Basics
Credit Lifecycle
Member Enrolls → Credits Issued → Member Uses Credits → Credits Expire (if unused)
↓ ↓
Billing Renews → New Credits Issued → [Optional: Rollover]Key Concepts
| Term | What It Means |
|---|---|
| Credit | A unit of value that covers a service |
| Issuance | When new credits are added to a member’s account |
| Expiration | When unused credits become invalid |
| Rollover | Carrying unused credits to the next billing cycle |
| Consumption | Using a credit to pay for a service |
When Credits Are Issued
On Enrollment
When a member first enrolls and payment is collected, their initial credits are issued immediately.
Example: Member enrolls on January 15th, pays $99. They immediately receive 1 facial credit.
On Renewal
Each billing cycle, when payment is collected, new credits are issued.
Example: Member’s billing date is the 15th. On February 15th, payment processes, and they receive their next credit.
💡 Key point: Credits are issued when payment succeeds. If payment fails, no new credits are issued until payment is resolved.
How Credits Expire
Expiration Settings
When you create a membership plan, you set how long credits last:
| Setting | What Happens |
|---|---|
| 30 days | Credits expire 30 days after issue |
| 60 days | Credits expire 60 days after issue |
| 90 days | Credits expire 90 days after issue |
| Custom | You set the number of days |
Expiration Example
Plan: Credits expire in 60 days
| Event | Date | Credit Status |
|---|---|---|
| Member enrolls, credit issued | Jan 15 | 1 credit (expires Mar 16) |
| Member uses credit | Feb 10 | 0 credits |
| New credit issued (renewal) | Feb 15 | 1 credit (expires Apr 16) |
If the member didn’t use the January credit by March 16th, it would expire and be lost.
What Happens at Expiration
- Credit becomes invalid — Can no longer be redeemed
- Member is notified — Before expiration (reminder) and at expiration
- History is preserved — You can see expired credits in their history
[Screenshot: Credit history showing expired credit]
How Rollover Works
What Is Rollover?
Rollover lets unused credits carry forward to the next billing cycle instead of expiring. It’s a member-friendly perk that adds flexibility.
Rollover Settings
When configuring a plan, you can enable rollover with these controls:
| Setting | What It Does |
|---|---|
| Rollover enabled | Yes/No — does rollover apply? |
| Max rollovers | How many cycles can a credit roll? (e.g., 1 month) |
| Rollover expiration | How long do rolled credits last? (e.g., 30 days) |
Rollover Example
Plan: 1 credit/month, rollover enabled, max 1 rollover, 30-day rollover expiration
| Month | Event | Credits |
|---|---|---|
| January | Credit issued | 1 new credit |
| January | Member doesn’t use it | 1 unused credit |
| February | Credit rolls over + new credit issued | 1 rollover (expires in 30 days) + 1 new credit |
| February | Member uses 1 credit | 1 credit used, 1 remaining |
| March | Rollover credit expires (if still unused) | Gone |
⚠️ Important: Rollover credits typically have shorter expiration than regular credits. This prevents unlimited accumulation.
Why Limit Rollovers?
Without limits, members could accumulate many unused credits—creating liability for your business. Setting a max rollover (like 1 month) ensures:
- Members are encouraged to use credits regularly
- Your liability stays manageable
- Credits remain valuable (use it or lose it incentive)
Which Credits Get Used First?
Oldest Credits First (FIFO)
The system automatically uses the oldest credits first. This means:
- Credits about to expire get used before newer credits
- Rollover credits (which expire sooner) get used before fresh credits
- Members don’t have to think about which credit to use
Example: Member has:
- 1 rollover credit (expires Feb 28)
- 1 new credit (expires Apr 15)
At checkout on Feb 20, the rollover credit is used first because it expires sooner.
💡 Tip: You can mention this to members: "Good news—I'm using your older credit first so nothing expires!"
Checking Credit Balances
Where to See Credits
In the client profile:
- Go to Clients and find the member
- Click their Membership tab
- See:
- Current cycle credits
- Rollover credits (if any)
- Expiration dates for each
- Usage history
At checkout:
- Member badge shows total available credits
- Click for breakdown by expiration date
[Screenshot: Credit balance in client profile]
Understanding the Credit Display
| Display | Meaning |
|---|---|
| ”1 credit available” | One service credit ready to use |
| ”2 credits (1 rollover)“ | One current + one rolled from last month |
| ”Expires Mar 15” | When this credit becomes invalid |
| ”0 credits” | All credits used or expired |
Manual Credit Adjustments
Sometimes you need to add or remove credits manually:
When to Adjust
- Add credits: Goodwill gesture, service recovery, promotional bonus
- Remove credits: Correction, refund situation, policy enforcement
How to Adjust
- Go to member’s Client Profile → Membership
- Click Actions → Adjust Credits
- Choose add or remove
- Enter amount and reason
- Confirm
[Screenshot: Credit adjustment dialog]
💡 Tip: Always enter a reason. This creates an audit trail and helps you remember why the adjustment was made.
Common Questions
What happens to credits when membership is paused?
Credits are preserved. Existing credits remain usable, but no new credits are issued until the membership resumes.
What happens to credits when membership is cancelled?
Existing credits remain usable until they expire. The member can still redeem them; they just won’t get new ones.
Can credits be refunded as cash?
Typically no—credits are for services, not cash value. However, this is a business policy decision. Check your membership terms.
What if a member has credits from multiple plans?
If a member has been on different plans, they may have credits with different coverage. The system tracks credits by plan and applies the appropriate coverage rules.
Can I give someone unlimited credits?
Technically you could create a plan with many credits, but “unlimited” isn’t recommended—it creates unpredictable liability. Instead, set a high but defined number.
Why didn’t my member get credits this month?
Check:
- Payment status — Did their billing succeed? No payment = no credits
- Membership status — Are they paused or suspended?
- Billing date — Has their renewal date passed?
Credit Rules Summary
| Rule | How It Works |
|---|---|
| Issuance | Credits issued on enrollment and each successful renewal |
| Expiration | Credits expire after X days (you configure) |
| Rollover | Unused credits can carry forward (optional, limited) |
| Consumption | Oldest credits used first (automatic) |
| Paused | Existing credits preserved, no new issuance |
| Cancelled | Existing credits remain until expiration |
| Failed payment | No new credits until payment resolved |
Pro Tips
📧 Use expiration reminders: The system sends reminders before credits expire. Encourage members to book when they get these—it drives visits and prevents "I forgot" complaints.
🎁 Rollover as a premium perk: Offer rollover on higher-tier plans only. It differentiates your VIP membership and justifies a higher price.
📊 Monitor credit utilization: If many members have unused credits, they may not see value. Consider shorter expiration or outreach to encourage visits.