What Credit Card Protection Is and How to Use It: The Complete Guide
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What Is Credit Card Protection?
Types of Credit Card Protection
Fraud protection Even if you’re extremely careful with your card (more on that below), there’s a chance you could be a victim of fraud. Whether it be credit card theft, identity theft, or another type of fraud, you should not be liable for any charges that occur as a result. The Fair Credit Billing Act limits your liability for fraud to $50. In practice, however, all major credit card networks waive that and offer a $0 liability policy (however, you should check your card agreement to make sure). Return protection Some credit cards will extend the return window offered by a retailer. For example, if you attempt to return a product you’re not happy with within 60 to 90 days, and are rejected by the merchant, your credit card company might issue you a refund instead. Purchase protection If you buy something with your card and it gets lost, stolen, or damaged not long after, purchase protection allows you to get that item replaced or repaired, or get reimbursed, at no cost to you. The time window varies between 90 and 120 days after purchase, depending on the card. Price protection If you buy something then later see it selling for less, price protection allows you to get back the difference. The price protection time frame will vary depending on the card, but is often between 60 and 90 days. Travel insurance Whenever you’re traveling, there’s always a risk that something will get in the way of your plans. If your tickets and reservations are nonrefundable, you'll be out of luck. That is, unless you paid with a card that offers travel insurance. There are a variety of different types of travel insurance policies, but many cover trip cancellation or interruption and lost or damaged luggage. Rental car insurance If your card offers rental car insurance, you may be able to opt out of a rental agency’s insurance package. In some cases, your credit card’s rental insurance will cover up to the cash value of the car for collision damage or theft.
How Are You Protected With Your Credit Card?
How Does Credit Card Payment Protection Insurance Work?
Disability that make you unable to work Unexpected loss or reduction in income Hospital stay of one or more nights Divorce The birth or adoption of a child The death of a family member A move to a new residence Retirement
What Doesn’t Credit Card Protection Insurance Cover?
8 Tips to Keep Your Credit Card Safe
1. Practice Credit Card Protection From Day One
2. Keep Your Account Number Private
3. Keep Your Information Current
4. Secure Your Devices and Networks
5. Protect Yourself Online
6. Check Your Accounts Often
7. Don’t Fall for Credit Card Protection Scams
8. Report Lost Cards and Suspected Fraud Right Away
Frequently Asked Questions
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