amount of the redeemed discount from the card issuer 39 s account 28 to the retail fuel merchant 39 s account 29 fig3 is a flow chart illustrating the steps of a second embodiment of the method of the present invention in this embodiment an agreement between a retail fuel merchant and a card issuer and or third party vendor enables customers to use their accumulated reward points or frequent flyer miles as a tender type at a fueling station reward points or miles are exchanged for a ppu discount on fuel at a defined exchange rate in the example illustrated in fig3 a retail fuel merchant and an airline enter an agreement at step 31 the airline has a frequent flyer program that awards air miles to customers who fly on the airline or make other purchases using an affinity type relationship credit card at step 32 a web portal is accessed in order to exchange air miles in the customer 39 s frequent flyer account for a cash value at step 33 in a so called u201c batch transfer u201d mode of operation air miles from the customer 39 s frequent flyer account are converted to a promotional cash value at a negotiated and agreed upon exchange rate at step 34 the promotional cash value is then credited to an account associated with the retail fuel merchant at step 35 the merchant provides a negotiated and agreed upon ppu discount to the customer in a fueling transaction at step 36 the amount of the redeemed discount is then calculated by multiplying the ppu discount by the number of units of fuel purchased in the transaction at step 37 the amount of the redeemed discount is transferred to the retail fuel.