Points Expiry: What It Means and How the Rules Work

By Alva Chew · Updated 2026-11-04

Definition Points expiry is a rule that removes loyalty points from a member's balance after a set time. There are two common kinds: a fixed date after the points were earned, and a lapse after a period with no earning or redeeming. Some places limit it by law, so check the rules where your customers live before you set one.

What is points expiry?

Points expiry is a term in your loyalty program that removes points from a member’s balance. The member earned them, then the rule cancelled them. Owners use expiry to cap what the program owes, which ties it to points liability and breakage.

What kinds of expiry are there?

Two rules cover most programs.

Type	How it works	Example
Fixed expiry	Each batch of points ends a set time after it was earned	Points last 12 months from the day earned
Inactivity expiry	The balance ends after a period with no earning or redeeming, and any activity restarts the clock	Balance cancelled after 12 months with no visit

A third option is no expiry at all. Delta’s SkyMiles program rules say: “Under the SkyMiles Mileage Expiration policy, miles do not expire.” The same rules let Delta close an account, which removes the miles in it.

How do real programs set expiry?

Starbucks Rewards uses fixed expiry with a way to extend it. Its terms, effective 10 March 2026, say Stars “expire six (6) months after the calendar month in which such Stars were earned”. For example, Stars earned on 15 December 2025 expire on 1 July 2026.

Program	Rule	Source
Starbucks Rewards (US)	Stars expire six months after the calendar month earned. A qualifying purchase, a reward redemption or a digital reload of US$30 or more in the month before expiry extends them by a month. Gold and Reserve members keep Stars while they hold that status	Starbucks Rewards Terms of Use, effective 10 March 2026
Delta SkyMiles	Miles do not expire. The account can be closed in set circumstances, and closing removes the miles	Delta SkyMiles program rules, checked 4 November 2026

Source: each program’s own published terms, checked 4 November 2026. Terms change, so read the current version before you copy a rule.

Does expiry make customers buy more?

Only for some of them. Els Breugelmans and Yuping Liu-Thompkins studied expiry in Marketing Letters in 2017, using real program data and a lab experiment. They found that a finite expiry policy can raise purchases, but only for customers who can adapt their buying to it. They name usage level and shopping at multiple stores as the sources of that flexibility.

Source: Breugelmans and Liu-Thompkins, “The effect of loyalty program expiration policy on consumer behavior”, Marketing Letters 28(4), 2017.

A customer who visits once a month can respond to a deadline. A customer who visits twice a year cannot, and loses the points. That customer is a likely source of breakage and a poor redemption rate.

Is points expiry legal?

It depends on the place. Ontario, Canada is a clear example. Section 47.1 of the Consumer Protection Act, 2002 says no supplier shall enter into or amend a consumer agreement under which rewards points are provided “to provide for the expiry of rewards points due to the passage of time alone”. Any term that breaks this is not enforceable.

Ontario’s General regulation (O. Reg. 17/05, section 43.6) still allows a program to expire points if the member has not earned or redeemed during a specified period. Fixed expiry of the Starbucks kind would not pass there, but an inactivity rule can. The regulation also sets exemptions, for example where the supplier does not direct or control the expiry.

Source: Consumer Protection Act, 2002, section 47.1 and O. Reg. 17/05, sections 43.4 to 43.6, Ontario e-Laws, checked 4 November 2026. This is not legal advice. Other places have their own rules or none, so ask a local adviser.

Should you set an expiry rule?

You have three choices, and each has a cost.

No expiry. Simplest to explain. Liability grows with every unspent point, so cost it with your earn rate.
Inactivity expiry. Keeps active members’ points safe and clears dormant balances. Say the period in plain words and warn members before it happens.
Fixed expiry. Creates a deadline, but members must track each batch. That is a rule customers have to learn, which a points-based program is meant to avoid.

If you set a rule, state it on the sign-up screen and show the date next to the balance. Points that vanish without notice are the sort of surprise that makes members stop trusting a program. Our guide to rewards customers redeem covers how to set rewards members can reach before any deadline.

How Gimify fits

Gimify shows each member’s live points balance on their Google Wallet card, and the balance is shared across every outlet. Whatever rule you choose, the member sees the number they hold each time they open their wallet.

Questions owners ask

What does points expiry mean?

It is a rule in your program terms that cancels points a member has earned. Either a fixed time passes after they were earned, or the member goes a set period without earning or redeeming.

What is the difference between fixed expiry and inactivity expiry?

Fixed expiry removes each batch of points a set time after it was earned, whatever the member does. Inactivity expiry removes the balance only when the member has not earned or redeemed for a set period, and any activity restarts the clock.

Is it legal to expire loyalty points?

It depends on where your customers are. Ontario, Canada bars expiry from the passage of time alone, though it allows expiry after a period with no earning or redeeming. Many places have no such rule. Ask a local adviser before you set one.

Do points have to expire?

No. Delta states in its SkyMiles program rules that miles do not expire. Expiry is a choice you make in your terms, and some programs do without it.

How does expiry affect my accounts?

Points you expect never to be redeemed count as breakage, and expired points leave your points liability. Under IFRS 15 and ASC 606 you recognise expected breakage as members redeem, so ask your accountant how it applies to you.