This is the old credit system which is still available with the new version of the plugin. Store owners now have the option to choose between The Recursive and the Level Based Credit System. The comes with the Recursive Credit System enabled. If store owners wish to switch to the Level Based Credit System, they would need to enable the Level Based Credit System from the plugin settings.
This method uses the previous level referrers credit points to calculate his/her next level referrers credit points and so on. Kindly below the image below for a better understanding.
From the above graphic, one can understand that Customer A referred Customer B and C; Customer B referred Customer D and E; Customer C referred Customer F; Customer D referred Customer G, Customer E referred Customer H; and Customer F referred Customer I.
Suppose, the Global percentage for credit points have been set to 10% and Customer I makes a purchase of worth $1000.00. Then, the referrer of Customer I – which is Customer F, will receive 10% of $1000.00 points which equals to 100 points. Customer C is referrer of Customer F so Customer C will earn 10% of points earned by his/her affiliate which in this case is – Customer F. Customer F has earned 100 points and hence Customer C will earn 10 points. Similarly, Customer A will earn 1 point as his/her affiliate earned only 10 points from this purchase.