Nector + Custom Checkout Integration: Let Customers Redeem Loyalty Points on Your Own Checkout

Nikita Mathur
Nikita Mathur
May 27, 2026
5 min read
top 5 key benefits of integrating a loyalty program with shopify
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Not every ecommerce brand uses a standard checkout.

Some brands build custom checkout experiences to support unique payment flows, faster conversion paths, regional requirements, custom storefronts, app-based buying journeys, or headless commerce setups. But when checkout becomes custom, loyalty redemption can become harder to implement.

A customer may have loyalty points in Nector, but if the customer's checkout does not know how to read, calculate, and apply those points, the reward experience breaks at the most important moment.

The Nector + Custom Checkout integration solves this problem.

This integration lets merchants connect Nector with their own custom checkout so customers can use loyalty points directly during checkout and receive a discount. Nector's help guide explains that this integration is specifically for custom checkout setups and requires merchants to use Nector APIs to integrate the checkout experience.

For Shopify, DTC, ecommerce, retail, and headless commerce brands, this means loyalty redemption does not have to be limited to Nector's rewards widget or standard checkout partners. If your checkout is custom, Nector can still support loyalty point redemption through an API-led workflow.

Build loyalty redemption into your own checkout. Use Nector's Custom Checkout integration to let customers redeem loyalty points directly during payment. Book a Demo

What Is the Nector + Custom Checkout Integration?

The Nector + Custom Checkout integration lets merchants use Nector APIs to connect loyalty point redemption with their own checkout. Customers can use loyalty points directly on the custom checkout to receive a discount, while merchants define redemption rules in Nector that control how points convert into discount value.

Why Does Custom Checkout Loyalty Redemption Matter?

A custom checkout gives brands flexibility, but it also creates responsibility.

If the checkout experience is custom, the brand needs to make sure core customer benefits still work. That includes loyalty points, redemption rules, discount limits, and minimum payment conditions.

Without a proper integration, customers may face problems such as:

Checkout issueCustomer impact
Loyalty points are not visibleCustomers may forget they have rewards
Redemption is separate from checkoutCustomers may need extra steps to use points
Discount logic is not connectedThe checkout may not apply the right discount
No redemption limits existThe brand may expose itself to uncontrolled discounting
Minimum payment rules are missingCustomers may place ₹0 orders unintentionally
Loyalty feels disconnectedThe program becomes less useful at purchase time

The Nector Custom Checkout integration is designed for brands that need an API-based way to bring loyalty redemption into a checkout they control. Nector's guide clearly states that this setup is only for custom checkout and that merchants need to use Nector APIs to integrate with their checkout.

What Does the Nector + Custom Checkout Integration Do?

The Nector + Custom Checkout integration connects Nector's loyalty redemption logic with a merchant's custom checkout, helping merchants enable Custom Checkout under Third Party Checkouts in Nector, copy the Secret Webhook ID from the Nector dashboard, use Nector APIs to connect loyalty redemption with the custom checkout, define the redemption rule for Custom Checkout, decide how loyalty points convert into discount value, set the maximum discount a customer can receive at once, optionally add a minimum cart amount, optionally define the minimum payment required from the customer, and let eligible customers use loyalty points directly during checkout.

Nector explains that after enabling the integration, merchants must define the redemption rule that should be used for Custom Checkout. This rule controls the conversion of loyalty points into discount value, similar to redemption rules used for Nector's rewards widget or rewards page.

The important distinction is that this is not a plug-and-play partner checkout integration. It is an API-based integration for merchants who own or manage their custom checkout experience.

How Does the Nector + Custom Checkout Integration Work?

Step 1: Open Third-Party Checkouts in Nector

The setup starts inside the Nector merchant dashboard. Go to the Integrations page, click Third Party Checkouts in the sidebar, and look for Custom Checkout in that section.

Step 2: Configure Custom Checkout

Click Configure to open the Custom Checkout integration page. On that page, toggle the integration status to On. Once enabled, the Custom Checkout integration becomes available for setup inside Nector.

Step 3: Copy the Secret Webhook ID

After opening the Custom Checkout integration page, scroll to the Secret Webhook ID section. Nector's help guide says this Secret Webhook ID is required when using the API to integrate Nector with the merchant's checkout. This ID becomes part of the technical integration workflow between Nector and the custom checkout.

Step 4: Use Nector APIs to Integrate With Your Checkout

This is the main difference between Custom Checkout and standard third-party checkout integrations. Nector's guide states that Custom Checkout requires merchants to use Nector APIs to integrate with their checkout, and it links to a separate API guide for the technical implementation.

This means the merchant's developer or technical team should be involved. The checkout must be able to communicate with Nector, apply eligible loyalty discounts, and respect the redemption rules configured in the Nector dashboard.

Step 5: Define the Custom Checkout Redemption Rule

After enabling the integration, define the redemption rule for Custom Checkout. This rule decides how loyalty points convert into a discount value. For example, Nector's help guide gives a sample setup where every 1 loyalty point equals ₹1, and the customer can get up to ₹100 discount at once. The exact rule should depend on the brand's margin, average order value, loyalty liability, and retention strategy.

Step 6: Create an Amount Discount Rule

Go to the Redemption Rules tab. In the Custom Checkout Redemption Rules section, click Create and choose Amount Discount. Enter the redemption values and click Create at the end of the pop-up to save the rule. Nector's guide also notes that merchants can optionally add a minimum cart amount. This gives the brand control over how much discount a customer can receive when using loyalty points on the custom checkout.

Step 7: Add a Minimum Payment Restriction, If Needed

Some brands may not want customers to reduce an order to ₹0 using loyalty points. Nector's help article includes an optional Minimum Payment Required from Customer restriction. This lets merchants define the minimum amount a customer must pay when placing an order, regardless of how many loyalty points they have.

For example, if a customer is buying items worth ₹500 and has enough loyalty points to cover the full order, the merchant can require the customer to pay at least 20% of the cart amount. In that case, the customer can only receive up to ₹400 discount through points.

Step 8: Choose Fixed or Percentage-Based Minimum Payment

The minimum payment restriction includes two fields:

FieldMeaning
Minimum Payment Required from CustomerThe minimum amount the customer must pay while placing an order
Amount TypeThe type of amount, such as a fixed value or a percentage of cart value

Step 9: Test the Custom Checkout Redemption Flow

Before going live, test the full customer journey. The test should confirm whether the checkout can identify the customer correctly, the checkout can fetch or apply eligible loyalty point redemption, the correct redemption rule is applied, the maximum discount limit works, minimum cart amount works if configured, minimum payment required works if configured, the final payable amount is correct, the customer-facing redemption language is clear, and the order is completed correctly after the loyalty discount application.

Because this integration uses APIs, technical testing is especially important. Do not treat it like a simple dashboard-only setup.

What Can You Do With Nector + Custom Checkout?

1. Add loyalty point redemption to a custom checkout

The main use case is direct loyalty redemption on a checkout that the merchant controls. If a brand uses a custom checkout instead of a standard checkout flow, Nector APIs can help connect loyalty point usage to that checkout experience. Nector's help article says the integration enables customers to use loyalty points directly on the custom checkout and get a discount.

2. Support headless or custom storefront checkout flows

Headless and custom storefront brands often need more control over the customer experience. The Custom Checkout integration is useful when the brand's checkout journey is not fully handled by a standard app or checkout partner. Developers can use Nector APIs to integrate loyalty redemption into the brand's checkout flow.

3. Reduce manual reward-code friction

If loyalty points are only redeemable through a separate widget or manually generated coupon, customers may skip redemption. Custom Checkout integration allows brands to make redemption part of the checkout journey, reducing the need for customers to leave checkout just to use points.

4. Control point-to-discount conversion

The redemption rule defines how many loyalty points are worth as a discount. For example, Nector's guide gives an example where 1 loyalty point equals ₹1, with a maximum discount of ₹100 at once. This lets brands decide how generous the loyalty program should be while still controlling discount exposure.

5. Add a maximum discount limit

A maximum discount limit helps prevent over-redemption. Even if customers have a large number of points, the brand can control how much discount can be applied in a single order. This is important for managing margins and loyalty liability.

6. Add minimum cart conditions

Nector's help guide notes that merchants can optionally add a minimum cart amount while defining the redemption rule. This can help brands make redemption available only when the cart crosses a defined value.

7. Prevent full ₹0 orders

The optional minimum payment restriction helps merchants require customers to pay some amount while placing an order. This is useful for brands that want customers to always pay a fixed amount or percentage of the cart value, even if they have enough loyalty points to cover the entire order.

8. Build a checkout experience that matches your retention strategy

Custom checkout gives brands more flexibility. With Nector connected, that flexibility can include loyalty redemption, customer-specific reward logic, and merchant-defined redemption controls.

What Does This Integration Unlock for Merchants?

Merchant benefitWhy it matters
Loyalty redemption on custom checkoutCustomers can use Nector points in a checkout built by the merchant.
API-led flexibilityDevelopers can connect Nector with custom checkout workflows.
Better reward visibilityLoyalty value appears closer to the purchase decision.
Controlled redemption economicsBrands can define point value and maximum discount.
Minimum cart controlRedemption can be limited to eligible cart values.
Minimum payment protectionBrands can prevent full ₹0 orders if needed.
More connected customer experienceLoyalty becomes part of the checkout journey instead of a separate step.

Nector Custom Checkout vs Standard Checkout Redemption

CriteriaStandard checkout app integrationNector + Custom Checkout
Setup typeUsually partner-specificAPI-based
Best forBrands using supported third-party checkoutsBrands with their own custom checkout
Technical involvementLower to moderateHigher, developer involvement needed
Webhook ID useOften shared with checkout partnerUsed by the merchant/developer in API integration
Redemption rule setupDefined in NectorDefined in Nector
Point-to-discount logicControlled through NectorControlled through Nector
FlexibilityLimited by partner checkout flowHigher flexibility for custom experiences

Integration Use Case Comparison

Integration use caseMerchant problemHow Custom Checkout helpsHow Nector adds retention valueResult for the brand
Custom checkout redemptionLoyalty points do not work in a custom checkout.Provides the merchant-owned checkout surface.Supplies loyalty points and redemption rules.Customers can redeem points during checkout.
Headless commerceStandard checkout integrations may not fit.Allows developer-led checkout control.Provides API-connected loyalty logic.Better fit for custom storefronts.
Discount controlBrands need to manage reward cost.Applies discount in the checkout experience.Defines conversion and maximum discount.More controlled loyalty economics.
Minimum cart ruleBrands want redemption above a cart threshold.Applies cart-aware checkout logic.Lets merchants configure minimum cart amount.Redemption aligns with order value goals.
Minimum payment ruleBrands want to avoid ₹0 orders.Keeps payment required at checkout.Defines minimum customer payment.Better control over checkout redemption.
Repeat purchase loopCustomers need a reason to return.Makes points usable during purchase.Connects earned points to future redemption.Loyalty supports repeat orders.

Where Does This Fit in the Nector Retention Ecosystem?

Nector is the loyalty, referrals, and reviews layer. Custom Checkout is the merchant-owned checkout layer. Together, they help brands connect loyalty value with a checkout experience they control.

Nector layerCustom Checkout role
Loyalty pointsCustomers can redeem points during checkout.
Redemption rulesNector defines how points convert into discount value.
Maximum discountNector controls how much discount can apply at once.
Minimum cart amountBrands can define cart-level redemption conditions.
Minimum payment requiredBrands can prevent full ₹0 orders if needed.
APIsDevelopers connect Nector logic with custom checkout.
Repeat purchase journeyCustomers can return and use earned loyalty value.

Nector provides the loyalty redemption logic. Custom Checkout gives merchants the flexibility to bring that logic into their own buying experience.

Who Should Use the Nector + Custom Checkout Integration?

Best-fit brands

  • Use Nector for loyalty points and rewards.
  • Have a custom checkout experience.
  • Use a headless storefront or custom buying flow.
  • Want customers to redeem points directly during checkout.
  • Have developer resources for API implementation.
  • Want control over how loyalty redemption appears in checkout.
  • Need custom discount, cart, or minimum payment logic.
  • Sell through Shopify, DTC, ecommerce, retail, app-based, or omnichannel journeys.

Teams that benefit most

  • Ecommerce managers
  • DTC founders
  • Product managers
  • Checkout engineering teams
  • Headless commerce teams
  • Retention marketers
  • Loyalty program managers
  • Shopify agencies
  • Growth and revenue teams

How Do You Get Started?

What you need before setting up

  • Active Nector account
  • Custom checkout environment
  • Access to the Nector merchant dashboard
  • Developer or technical team
  • Secret Webhook ID from Nector
  • Access to Nector API documentation
  • Defined loyalty point conversion value
  • Maximum discount rule
  • Minimum cart amount, if applicable
  • Minimum payment amount, if applicable
  • Test customer account with loyalty points
  • Test checkout order flow

What to configure carefully

  • Whether Custom Checkout is toggled on in Nector.
  • Whether the Secret Webhook ID is copied correctly.
  • Whether the developer team is using the correct Nector API guide.
  • Whether the point-to-discount conversion value is correct.
  • Whether the maximum discount matches your margin strategy.
  • Whether a minimum cart amount is needed.
  • Whether a minimum payment is required from the customer.
  • Whether checkout redemption works across logged-in and identified customer flows.
  • Whether the customer-facing redemption copy is simple and clear.

What to test before launch

  • Whether the checkout can identify the customer.
  • Whether loyalty points are fetched or applied correctly.
  • Whether the correct redemption rule is used.
  • Whether the discount amount is accurate.
  • Whether the maximum discount limit works.
  • Whether the minimum cart amount works, if configured.
  • Whether the minimum payment restriction works, if configured.
  • Whether customers cannot accidentally place a ₹0 order unless intended.
  • Whether order totals and payment amounts are correct.
  • Whether edge cases are handled, such as insufficient points, expired sessions, partial redemption, and failed payment attempts.

How do you measure success?

Track these metrics after launch:

  • Checkout loyalty redemption usage
  • Loyalty point redemption rate
  • Repeat purchase rate among loyalty members
  • Average order value for customers redeeming points
  • Checkout completion rate for customers with redeemable points
  • Share of customers using points at checkout
  • Support tickets related to reward redemption
  • Discount cost from loyalty redemptions
  • Repeat purchase revenue from loyalty members
  • Technical error rate for checkout redemption calls

The goal is not only to connect to an API. The goal is to make loyalty easier for customers to use inside the checkout experience that your brand controls.

Final Thoughts

The Nector + Custom Checkout integration is valuable because it gives brands flexibility.

Nector already manages loyalty points, rewards, redemption rules, referrals, reviews, and retention workflows. Custom Checkout allows brands to control the buying experience. When both are connected through Nector APIs, customers can redeem loyalty points directly during checkout without the loyalty program feeling separate from the purchase journey.

For Shopify, DTC, headless commerce, ecommerce, and omnichannel brands, this matters because custom checkout should not mean disconnected loyalty. Customers should still be able to use the value they earned at the moment they are ready to buy.

A strong retention loop looks like this: Customer earns points → customer returns → custom checkout recognizes loyalty value → customer redeems points → customer completes another purchase.

That is how loyalty becomes part of the checkout experience, even when the checkout is fully custom.

Want to connect loyalty, referrals, reviews, and custom checkout redemption across your ecommerce stack? Book a Nector demo.

Nector integrates with 70+ tools including Shopify, WooCommerce, Magento, Klaviyo, GoKwik, Judge.me, Mailchimp, WebEngage, Shiprocket, LogicERP, and more. Explore all Nector integrations →

FAQs

What is the Nector + Custom Checkout integration?

The Nector + Custom Checkout integration lets merchants connect Nector with their own checkout so customers can use loyalty points directly during checkout and receive a discount.

How does the Nector + Custom Checkout integration work?

Merchants enable Custom Checkout under Third Party Checkouts in Nector, copy the Secret Webhook ID, use Nector APIs to integrate with their checkout, define redemption rules, and test loyalty point redemption in the custom checkout flow.

Do merchants need developers for this integration?

Usually, yes. Because the Custom Checkout integration requires API implementation, a developer or technical team should be involved in connecting Nector with the merchant's checkout. Nector's guide says merchants need to use Nector APIs for the custom checkout integration.

What is the Secret Webhook ID used for?

The Secret Webhook ID is needed when using the API to integrate Nector with the custom checkout. It is available inside the Custom Checkout integration page in the Nector dashboard.

What is a Custom Checkout redemption rule?

A Custom Checkout redemption rule defines how loyalty points convert into discount value during checkout. Nector's help guide explains that the rule controls how many loyalty points are worth in terms of discount value.

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