When Microsoft retired Microsoft Points, the Xbox Live Rewards plan was also shelved. Xbox Live Rewards allowed owners of the console to earn free Microsoft Points just by taking part in their normal Xbox Live activities. By saving up those points, gamers could then use them to purchase things on the Xbox store.
Microsoft had already previously announced that the plan would be returning (a full day earlier than previously expected) but to the excitement of Xbox Live members, it’s been fully updated. Like its previous incarnation you will earn your credits just by participating in the Xbox Live experience from taking part in a survey (250 points) or renewing your Gold subscription (3000 points for a 12 month renewal). However, instead of receiving Microsoft Points, the new service gives you Reward Credits.
Of course, a revamping of the Xbox Live Rewards system means that there are also new features that will help you earn Reward Credits, including reaching the new “Master” Achievement tier that will get you 300 Credits for every $10.38 you spend as long as you have a Gamerscore of over 75 thousand.
Once you have at least 5000 Reward Credits, Microsoft will convert them into your local currency which is about $5USD here in America. The FAQ also makes it clear that the sum will be deposited into your account by the 15th or the 30th of the month, unless you request an earlier deposit provided that you have at least 1000 credits.
You can find the full details on the new Xbox Live Rewards plan on the website.
(Source: Xbox Live Rewards FAQ)