How shopify Application Credit API works

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Shopify Partner
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Hello, I am a Shopify developer.

I have used the POST requests of the application credit creation via REST API and created the credit with a test flag for my own development store.

API: https://shopify.dev/docs/admin-api/rest/reference/billing/applicationcredit#create-2020-07


Now does anyone know how the credit and its ecosystem works?
From my store admin, I cannot see anywhere that I got the credit.
I have also tried to purchase my app with a test flag with the recurring charge API but on the payment page not get any notification/message that I got/have the credit.

Can anyone explain the behavior of the credit functionality of the API.
Where the merchant can see it?
Where and how the merchant will spend it?
When the merchant will have to pay for the credit he took via this API?

 

Any other information if a developer should get to dig in it?


I know I asked a lot but I am just curious about the ecosystem and working of this API. Unfortunately not found much information from Shopify's documentation.

Thanks a lot for hearing me. 

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