Raise your hand if you’ve ever bought something at full price only to find it went on sale soon after.
Me too. This is the worst.
But did you know that some credit cards will refund you the price difference even if you bought it from another store? This unique advantage is known as price protection and it can be a game changer.
While it’s not necessarily something you’ll use every day, it can still help save you some hard-earned money, especially if your purchase was quite expensive to begin with. But not all credit cards offer this. So let’s take a look at the top three price-protected credit cards and see how the refund policy works.
What is credit card price protection?
Credit card price protection is an added benefit that offers a refund (up to a certain maximum and for a limited time period determined by the issuer) when an item you buy with that card sells for a lower price.
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You will need to prove that it is the exact same item, but it does not have to be sold in the same store. If your purchase qualifies, you can apply for price protection with your credit card and receive a refund in accordance with your credit statement.
It is important to note that you need to be active. Your credit card company won’t call you and tell you you overpaid for something. Instead, you will need to keep track of the items you buy, whether in a store or online. You then need to verify that your product is indeed eligible for a refund and collect the proper receipts to prove that you are eligible for an adjustment.
Please also be aware that there are exceptions that you should review before making any claims. For example, Mastercard says that purchases on auction sites such as eBay will likely not be eligible for price protection. Items such as live plants or animals will also not work.
While this process may not be viable for a small ticket purchase, credit card price protection can potentially save you hundreds of dollars if the difference is significant. For example, if you bought a new laptop that goes on sale next week for $300 less, going through the price protection process could be worth your while.
Read more: Why you should buy (almost) everything with a credit card
Best Credit Cards for Price Protection
Price protection, unlike purchase protection or an extended warranty, is not a benefit you see on many credit cards on the market. However, this is still an important perk worth having, especially for bargain hunters.
Here are the top three credit cards with price protection:
Capital One SavorOne Cash Rewards Credit Card
The Capital One SavorOne Cash Rewards Credit Card is a great shopping card as price protection covers a price reduction of up to $250 on an eligible item if it occurs within the first 120 days of purchase. But note that cardholders can only submit up to four applications per year, and there are exceptions such as art or jewelry. Be sure to read the Cardholder Benefits Guide as it clearly states the do’s and don’ts when it comes to price protection.
Aside from price protection, the card is also just a solid rewards card that doesn’t require an annual fee either. You’ll receive an unlimited 3% cashback on four popular bonus categories: Restaurants, Entertainment, Popular Streaming Services, and Grocery Stores (excluding supermarkets like Walmart® and Target®), as well as a 1% cashback on all others suitable purchases. .
And if you’re a frequent traveler, you’ll appreciate that the Capital One SavorOne Cash Rewards credit card also charges no foreign transaction fees.
Capital One Walmart Rewards® Card
The Capital One Walmart Rewards® Card also offers up to $250 on an eligible item with a price reduction within 120 days of purchase, with a maximum number of claims per year. And it’s not just about shopping at Walmart. Items purchased at other retailers are also eligible if they have been charged to your Capital One Walmart Rewards® card.
In addition to price protection, the card is also a good choice if you shop frequently at Walmart, with up to 5% cash back on Walmart purchases and no annual fees.
REI Co-op World Elite Mastercard®
If you frequently shop at this outdoor gear retail store, the REI Co-op World Elite Mastercard® might be a worthy store card. There is no annual fee and all foreign transaction fees are waived, in addition to the great reward potential for REI purchases. And because it’s a World Elite Mastercard®, one of its benefits is price protection.
You can get a refund if your purchase drops in value within 120 days of purchase (exact price cap and terms depend on your account). It applies to purchases both at REI and at other stores. Because outdoor gear can be quite expensive, a combination of bonuses and REI Co-op World Elite Mastercard® price protection can come in handy.
How to use credit card price protection
If you’re ready to apply for price protection, here’s a step-by-step guide:
1. Confirm that your purchase is eligible
Did you make a purchase with a price-protected credit card and within the time frame set by the issuer? Be sure to read the Cardholder Benefits Guide (which you can find in your online account if you have lost your paper copy) to see if there are any coverage limitations.
2. Collect all receipts and supporting documentation.
You will need to prove that your purchase is eligible for price protection. Go back and collect any physical or online receipts that clearly state the purchase date. Take screenshots of the same item sold in the same store or from a different seller to prove that the same item is being sold at a lower price.
3. Apply
You will go through the application process online or by phone, depending on the exact details in the Cardholder Benefits Guide. The requirements administrator will then contact you if they require additional documentation. If approved, you will receive a credit statement refund.
bottom line
Some credit card benefits are more intuitive than others, such as getting credit on your statement or zero fees. Others, like price protection, require you to do some work, but can be a big money-saving benefit when you need it most.
Even if you only reserve your price protection card for certain large purchases, this is a valuable perk to keep in your pocket. You never know when you will need it.
Featured Image: Watchara Ritjan/Shutterstock.com
