Product: Credit card or prepaid card

I currently hold a CITI Mastercard. It is a primary card that accumulates rewards points ( termed thank you points ) which I always choose to use as a CITI credit card statement credit. I am able to login to the CITI rewards account to view the points I've accumulated and indicate how many of those points I'd like to redeem as a statement credit. This option allows for points reimbursement such that 1000 points earned can give me a {$10.00} statement credit and I can use pretty much any amount of points to acquire this benefit ratio. 
I have noticed recently that at certain stores ( XXXX XXXX XXXX or online ) I will have a pop up option on the credit card machine during payment with my CITI card, offering that I can use these thank you points as a credit on my purchase that day. In every instance when this has happened, my transaction will not complete until I answer yes/no to that option on the credit card machine. " Would you like to use XXXX points today on this purchase to receive a {$10.00} credit right now? Yes or NO '' I'm not sure of exact wording, but this is the gist of what pops up on the credit card machine. Sometimes I'm waiting and waiting for the transaction to process not realizing I have this question on the screen to answer in order for the transaction to process -- -but once I do see the question, I always click 'no ' and the machine beeps to indicate the transaction is complete and I can remove my card. I honestly am not sure which merchants have offered me this option for using points at the time of sale. I always say 'no '. Statement credits offer a better credit $ to point option. 
WELL, I was in XXXX on XX/XX/2023 and used my CITI card for a purchase at the self check kiosk. As I was bagging my items, the credit machine gave me the familiar BEEP to alert me to remove my card, and I did. When I left the store I got an email that CITI rewards had TAKEN XXXX points and gave me {$10.00} off my purchase. I looked at my receipt and it showed that XXXX CITI thank you points had been redeemed for {$10.00} off. 
The details of the purchase are that it was made on XX/XX/23 at XXXX on terminal XXXX with master card approval number XXXX at XXXX XXXX XXXX XXXX, XXXX, WI XXXX. 
I DID NOT AUTHORIZE THIS REDEMPTION. I WAS NOT GIVEN THE USUAL QUESTION/OPTION ON THE CREDIT CARD CHECK OUT SCREEN that waited for me to respond before proceeding with the transaction. I did not accidentally touch the screen as I was bagging my items the whole time. I never looked at the screen, because when it beeped -- - the signal that we are all so familiar with that indicates we are to remove card -- - I removed the card. SOOOO UPSET -- - I did not authorize for CITI to deduct XXXX points. As I mentioned I ALWAYS choose to use my points as a statement credit and when I do so I get {$10.00} for 1000 points -- - a much better deal than the XXXX for {$10.00} at point of purchase CITI offers. 
I called CITI on XX/XX/2023 and the person ( her name was XXXX ) told me that if I don't answer the question ( asking if I want to use XXXX for {$10.00} ) and pull out my card from the machine IT WILL AUTOMATICALLY DEDUCT THE POINTS AND GIVE ME {$10.00}. WHHHHAAAAAT?!?!? The CITI rep said I could go back to XXXX and return my items and get my points back -- -- WHHHHHHAAAAT?!?!?!?!?! That's the option? 
THis is crazy and is wrong for the rewards system to take away points indiscriminately without my approval. I told the person this and she stated that " I need to be aware that any purchase from XXXX, XXXX, XXXX, XXXX, XXXX, XXXX or XXXX might automatically deduct the XXXX points if I don't respond to the question and pull my card out ''. If the machine beeps notifying the charge transaction is complete and I remove my card without seeing and therefore not answering the option, taking the points without my permission ( at a lower redemption value ) is wrong. 
I insisted I get a refund for the points that were taken away. She finally said she'd open a case ( # XXXX ) with this request and I am awaiting the response. Return my XXXX points and take the {$10.00} back, I say. Fix your system so it isn't taking the points without a response. The machine beeped, I've been trained to remove the card at the beep and did not read the screen nor touch the screen. 
I am awaiting a response to the claim. I am not as concerned about one transaction, but the continued potential of future transactions to take away points without my authorization -- for myself as well as the millions of other CITI cardholders that get points -- is really unsettling. It is a much better deal for CITI to dish out these {$10.00} credits at XXXX at the time of purchase then to credit {$10.00} for 1000 with their statement credit options. If people want to do that fine, but don't take them away without a response. I also want other consumers and merchants to learn from this experience. This is such a blatant attempt for the CITI rewards program to award fewer dollars per redeemed point. WRONG WRONG WRONG