ClubMaster Associates (being businesses operating a ClubMaster rewards programme, hereafter called 'Associates') are effectively purchasing Points from ClubMaster when they issue or allot points to the Clients and Customers (ClubMaster Members, hereafter called 'Members').
Associates select the issue rate for Points ('Points Issue Rate'), however they must adopt as a minumum the Base Points Issue Rate ('BPIR') of 1 Point per 50 Currency Units Spent (eg. In countries with the Dollar, such as the United States or Australia, 1 Point for every $50 spent by the Member), then those Points may be redeemed by the Member either with your business or with those other Associates (within your Network or other approved Networks) who have issued Points at the same rate or a higher rate. The purpose of the BPIR is to ensure that Associates are not disadvantaged by other Associates issuing Points more cheaply, without preventing Associates from offering bonus Points either regularly or as a special promotion. The cost of the Points rest with the Associate who allots them.
For example, a clothing boutique issues Points at the BPIR of 1:50. A member purchases $1,000 worth of clothing at the store, and receives 20 Points at the check-out. The Member then visits the electronics store next door, and redeems the 20 Points in the form of a $20 discount for a $1000 television. However the electronics store is conducting a sale offering Points at 1:25, meaning the Member redeems 20 Points but receives 40 Points, and the electronics store has just spent $20 more in marketing the sale of the television. This is okay, as all Associates are aware of the BPIR, however they may wish to offer more Points as a marketing inducement.
Therefore if a Member wishes to redeem, within one Network, Points which have been allotted in another Network, the member can do so unless one of the Networks is specifically restricted by its Member Associates. This is referred to as a Closed Market Network ('CMN') as opposed to the standard Open Market Network ('OMN').
The PIR may range from 1:50 to 1:1, the latter being when an Associate accepts Points as full consideration for the sale of their goods and services. This is referred to as an Exclusive Market Network ('EMN').
Although the Points Issue Rate ('PIR') of every ClubMaster Associate is available to Members online, all Associates are required to declare their PIR to Members.