Some benefits of using a credit card are obvious. For example, some use credit cards to take advantage of 0% offers, cash back rewards, or miles. But there are some additional perks to using a credit card that aren’t as well known. One of those perks is purchase protection
Purchase protection offers you additional assurance that the product you are about to buy is protected from certain types of losses. Whiles these protections vary from one credit card to another, purchase protections usually come in three flavors:
- Protection for purchases
- Warranty extensions
- Protection for returned items
Let’s take a look at each of these benefts.
Protection for Purchases
Protection for purchases cover merchandise that has been damaged or found to be defective. In some cases, the protection also covers you if the item you purchased becomes available for less than you paid. These protections usually lasts 90 days from the date of purchase. Depending on the card, there may be a minimum monetary requirement to qualify for a refund.
Examples from several popular credit cards:
American Express
- Embedded Protection: Use your Card and Purchase Protection protects eligible purchases against accidental damage or theft for up to 90 days from the date of purchase.
- Worldwide Coverage: Coverage includes eligible purchases made worldwide with the Card, including gifts purchased for others.
- Shop Worry Free: Purchase Protection repairs, replaces or reimburses you for up to the amount charged to the Card.
Citi Diamond Preferred Card
- Price Protection: If you buy something with your Citi card and then see it advertised in print for less within 60 days, you will receive a refund for the difference up to $250.
- Retail Purchase Protection: Most items purchased with your card are eligible for protection against accidental damage or theft for up to 90 days from the date of purchase.
Warranty Extensions
Many credit cards extend the terms of any original manufacturer’s warranty, which is typically an additional year added to the warranty. Some credit card companies, however, will not extend the warranty if you haven’t registered your product.
Examples from several popular credit cards:
MasterCard
- Extended Warranty: Doubles the original manufacturer’s or store brand warranty for up to one year when you pay with your eligible MasterCard card.
- Satisfaction Guarantee: If you become dissatisfied with a product you purchase using your eligible MasterCard card within 60 days of purchase, and the store will not accept a return, you may be eligible for a refund for the cost of the product up to $250.
American Express
- Embedded Protection: Charge your covered purchases that have a valid U.S. manufacturer’s warranty of 5 years or less to the Card.
- Extend Your Warranty: Charge your covered purchases that have a valid U.S. manufacturer’s warranty of 5 years or less to the Card.
Protection for Returned Items
These features guarantee customer satisfaction on covered items charged to a card. If a card holder tries to return an item and the manufacturer or vendor won’t take it back within the allotted time, the card holder will receive a refund from the credit card issuer.
Examples from several popular credit cards:
American Express:
- 90 days of Protection: If you try to return an eligible item purchased in the U.S. within 90 days from the date of purchase and the merchant won’t take it back, American Express will refund the purchase price.
- Up to $300 Coverage: You are covered for up to $300 per item, excluding shipping and handling, up to $1,000 annually per Card account.
MasterCard
- Satisfaction Guarantee: If you become dissatisfied with a product you purchase using your eligible MasterCard card within 60 days of purchase, and the store will not accept a return, you may be eligible for a refund for the cost of the product up to $250
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- How Credit Cards Protect Purchases
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- Citi Price Rewind
- American Express Blue Cash
- Citi Diamond Preferred Card Review
Tags: Card, Credit Card
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