If you use your rewards towards a purchase and later decide to return that item, your rewards will be credited back to your rewards account. For example, if you use a $10 coupon towards a $100 purchase that you decide to return, the $90 balance will be refunded on your credit card and the $10 reward credit (200 pts) will be deposited back into your rewards account.
Your VIP status will be updated based on your total spend.