Why the loyalty points of a customer is negative

Loyalty points are earned when the loyalty program is enabled and a customer makes a purchase. When a sale with which a customer has earned points from is refunded, the loyalty points earned through that sale will be removed from that customer. It is possible that the loyalty points will go below zero as the points will get converted to rewards automatically and the points refunded could be more than the customer's loyalty points balance.

In that case, a negative loyalty points balance will be shown in the loyalty points tab on the customer's details page. To illustrate this scenario, we could create a sale return that removes more points than the loyalty balance of the customer attached to the sale. 

1. This customer has a loyalty point balance of 20.46 as shown in the Loyalty tab of the customer details page.

2. Create a return of $100 which will remove 100 points from the customer as the "Minimum Spend Per Point Increase" is set to be $1

3. 100 points are removed from the customer and now you could see a negative loyalty points balance on the customer's details page

*Notice that the earned rewards will never be removed.