# Use negative points

> Profile-based loyalty programs can support a negative points balance. A customer's points balance becomes negative if the customer doesn't have enough points after a manual points deduction, or when the following events occur: Returns Cancellations Session reopens

> For the complete documentation index, see [llms.txt](https://docs.talon.one/llms.txt).

If a rollback or points deduction creates a negative balance for the customer, the following two transactions are displayed in the **Loyalty points** tab of the [customer profile](/docs/product/applications/display-customer-profiles#customer-profile-overview):
- The first transaction triggers the [rollbackAddedLoyaltyPoints](/docs/dev/integration-api/api-effects#rollbackaddedloyaltypoints) effect, which deducts all available active points and brings the balance to zero.
- The second transaction triggers the [addNegativeLoyaltyPoints](/docs/dev/integration-api/api-effects#addnegativeloyaltypoints) effect, which creates a negative points balance equal to the points remaining from the deduction or rollback. This transaction is highlighted in red because it creates a negative points balance.

<Admonition type='info' title='Example'>The customer currently has `50` active points. After returning an item from a particular session, `70` points are rolled back. If the loyalty program has negative balance enabled, this rollback takes place in two transactions:  The first transaction shows `-50` points, bringing the active points balance to zero. The second transaction shows `-20` points in red, creating a negative points balance.</Admonition>

Negative points have an immediate start date, and they do not expire. If negative balance
is enabled for the loyalty program, an unlimited number of negative points can be created.

To view all negative point transactions and balances for a customer, see the **Loyalty points**
tab in the
[customer profile](/docs/product/applications/display-customer-profiles.md#display-loyalty-point-transactions).

:::important
A customer's points balance cannot become negative from
[evaluating an effect](/docs/product/applications/evaluation-order-for-rules-and-filters.md#evaluate-effects).
Negative points can only be created after a rollback or manual points deduction.
:::

## Enable negative points

You can allow members of a loyalty program to have a negative points balance by enabling
the negative balance setting.

To enable negative balance:
1. Click <Loyalty className="icon"/> **Loyalty** on the leftmost menu.
1. Click the name of the profile-based loyalty program for which you want to enable
   negative points balance.
1. On the left-side menu, click <Points className="icon"/> **Points**.
1. In **Return Policy**, enable **Negative balance**.

## Disable negative points

Disabling negative balance for a loyalty program does not change the customers' existing
negative balances. Customers can
[offset](/docs/product/loyalty-programs/profile-based/use-negative-points.md#offset-negative-points)
their negative points balance by earning active points.

To disable negative points:
1. Click <Loyalty className="icon"/> **Loyalty** on the leftmost menu.
1. Click the name of the profile-based loyalty program for which you want to disable
   negative points balance.
1. On the left-side menu, click <Points className="icon"/> **Points**.
1. In **Return Policy**, disable **Negative balance**.

## Offset negative points

If a customer earns new active points after the session is closed, the newly added points
automatically offset any negative points balance in a single transaction.

<Admonition type='info' title='Example'>
The customer's current points balance is `-50`.
If the customer purchases new items that adds `100` points to their profile, these points
apply towards the negative points balance. The final active points balance is `50` points.
</Admonition>

A customer's negative points balance is automatically offset when one of the following events occur:

- **Addition of active loyalty points**: The negative points balance is automatically
  offset if you [import loyalty points](/docs/product/loyalty-programs/profile-based/manage-pb-lp-data.md#import-loyalty-points)
  or [manually add loyalty points](/docs/product/loyalty-programs/profile-based/manage-pb-lp-data.md#manually-add-loyalty-points)
  to the loyalty program.
- **Earning loyalty points after a session**: If a customer with a negative points balance
  earns loyalty points after a session is closed, it triggers the
  [offsetsNegativeLoyaltyPoints](/docs/dev/integration-api/api-effects.md) effect.
- **Activation of pending points**: Activating pending points offsets any negative points
  balance and adds to the active points balance in a single transaction.

## Related pages

- [Manage profile-based loyalty programs](/docs/product/loyalty-programs/profile-based/manage-pb-lp-data.md)
- [API Effects](/docs/dev/integration-api/api-effects.md#loyalty)