Guide to Understanding Credit Card Purchase Protection

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What Is Credit Card Purchase Protection?
How Does Credit Card Purchase Protection Work?
What Is Covered Under a Credit Card’s Purchase Protection?
What Is Not Covered Under a Credit Card’s Purchase Protection?
Animals and living plants Antiques and collectible items Any motorized vehicles (such as cars and boats) and their accessories Computer software Items purchased for resale, professional, or commercial use Items lost in transit by a common carrier Medical equipment Perishables and consumables (such as cosmetics, perfumes, and rechargeable batteries) Rented or leased items Traveler’s checks and cash Used or pre-owned items
Tips for Using Credit Card Purchase Protection
Save your receipts. Keep copies of the receipts of your major purchases, as you will need them to file a claim. Notify the police in the event of theft. If the item has been stolen, make sure to file a police report and to get a copy of the report. Check to see if you have other insurance coverage. If you have a primary insurance policy covering the item, you typically need to file a claim there before approaching your credit card issuer to use purchase protection. File a purchase protection claim. If you believe your purchase is eligible for protection under your credit card, fill out an online claim form on your credit card issuer’s website. You may also be able to call in to file your claim over the phone. Provide all the requested documentation. You’ll want to submit all the documents that are requested, and also provide answers to any questions that the benefit provider might have.
Documents Required to File a Credit Card Purchase Protection Claim
An itemized store receipt Your credit card statement showing the posted transaction A police report (if a purchase was stolen) Insurance claim (if applicable) Any documents that support your case of why a transaction should be covered by your card’s benefits
Purchase Protection vs Other Credit Card Benefits
Price protection: This benefit allows you to retroactively apply a lower price to an item that was purchased. For example, if you purchase a television today and 30 days from now the price drops by $200, this benefit would allow you to file a claim and receive the $200 difference. Extended warranty: This protection allows you to lengthen the time of coverage under an original manufacturer’s warranty. An extended warranty covers defects from the manufacturer, whereas purchase protection covers user damage. Return guarantee: Though not as commonly offered as other types of consumer protections, this benefit allows users to return an item within a certain time frame even if the retailer refuses to take it back.
Knowing Your Credit Card Company’s Purchase Protection Policy
Who’s covered Which transactions can receive purchase protection coverage The timeframe for coverage The dollar value limit of coverage per claim and per account Deadlines to file eligible claims How to file purchase protection claims
The Takeaway
Frequently Asked Questions
Photo credit: iStock/VioletaStoimenova
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About the Author
Jason Steele has been writing about credit cards and award travel since 2008. One of the nation's leading experts in this field, he has contributed to dozens of personal finance and travel outlets and has been widely quoted in the mainstream media.
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