redeem
v.v. to exchange a voucher or coupon for goods, services, or cash. You use this when you turn a saved reward into something real.
v. to exchange a token, voucher, or coupon for its equivalent value in goods, services, or money. In finance, it refers to buying back a bond or loan before its maturity date.
I redeemed my gift card for a coffee.
She redeemed her loyalty points for a free flight to London.
The company allowed shareholders to redeem their preferred stock at par value, providing an exit strategy before the market downturn.
From Middle English redemen, modified from Old French redimer, from Latin redimō (“release; obviate; atone for”), itself from red- (“back; again”) + emō (“buy; gain, take, procure”).
Transitive verb; typically takes a direct object (the voucher, points, or bond).