Abstract: A method and system for performing a redemption transaction by leveraging a payment network provides a way to conduct redemption transaction without requiring changes to merchant or acquirer infrastructure. The cardholder initiates a transaction using a redemption card. An intermediary receives the transaction data, determines whether the loyalty points account associated with the redemption card has sufficient points to cover the transaction, and initiates a secondary payment transaction against a secondary payment account. Alternatively, these functions may be performed by the issuer.