Protecting purchases with a credit card can be a valuable tool, but only if you know how to use it to your advantage. First, you need to know if your credit card offers purchase protection and, if so, what terms and conditions apply to your insurance coverage.
Luckily, some of the best travel cashback and credit cards offer purchase protection as an added benefit. If you have an eligible card, activating this coverage requires you to use your card only to pay for the items you wish to protect.
Ready to find out more? Here’s everything you need to know about the benefits of Purchase Protection and which credit cards offer this benefit.
What is credit card purchase protection?
Purchase Protection is an additional service offered by some credit cards. This protection allows the cardholder to receive a refund or replacement if an item purchased with an eligible credit card is damaged or stolen.
One popular Chase credit card that offers purchase protection is Chase Freedom Flex℠, and this is how Chase describes this coverage on their website:
“Purchase Protection covers your new purchases for 120 days against damage or theft up to $500 per claim and $50,000 per account.”
Let’s say you purchased a computer monitor with Freedom Flex, but it suddenly stopped working within a few days of purchase. In this case, you can return it to the store for a refund or an exchange. If that doesn’t work, you can file a Purchase Protection Claim with Chase (within 120 days of purchase) and have the item repaired or replaced or receive a refund of the purchase price (up to $500).
However, it’s worth noting that purchase protection is different from the two similar benefits of a credit card – Extended Warranty and Refund Protection. While purchase protection replaces or repairs products if they are damaged or stolen, extended warranties add an additional warranty period to products that are already covered by the manufacturer’s warranty. Meanwhile, return protection is a less common benefit that guarantees the return of an item when the seller refuses to accept it back.
Also note that all credit cards come with some basic purchase protections under the Fair Billing Act. This basic protection is available when you use any credit card to make a purchase, even if the card issuer doesn’t offer additional coverage.
How does this federal protection work? Let’s say you buy concert tickets for an event that’s canceled (not rescheduled), but you can’t get a refund from the place you bought them from. In this case, you can apply for a refund using a credit card and receive a temporary refund for tickets. At this point, the establishment will have to prove that the fee is valid and you will receive a refund if they do not.
In addition to this basic protection, some credit cards offer purchase protection benefits. We will explain which cards offer this bonus and what is commonly covered in the sections below.
Credit cards that provide protection for purchases
Quite a few credit cards offer purchase protection against damage or theft, including both personal credit cards and corporate credit cards.
Below you will find a list of the best purchase protection credit cards, as well as the cost to cover each card:
- American Express Blue Business Cash™ Card: Purchase insurance up to $1,000 per claim and up to $50,000 per card.
- American Express® Gold Card: Purchase protection up to $10,000 per claim and up to $50,000 per card.
- American Express® Green Card: Purchase protection up to $1,000 per claim and up to $50,000 per card.
- blue businessCM American Express Plus Credit Card: Purchase protection up to $1,000 per claim and up to $50,000 per card.
- American Express Blue Cash Everyday® Card: Coverage up to $1,000 per claim and up to $50,000 per card.
- American Express Blue Cash Preferred® Card: Coverage to protect purchases up to $1,000 per claim and up to $50,000 per card.
- Capital One Venture X Rewards Credit Card: Coverage up to $10,000 per claim and up to $50,000 per card.
- Chase Freedom Flex℠: Purchase protection coverage costs up to $500 per claim and $50,000 per account.
- Chase Freedom Unlimited: Purchase protection costs up to $500 per claim and up to $50,000 per account.
- Chase Sapphire Priority Card: Purchase protection coverage costs up to $500 per claim and up to $50,000 per card.
- Chase Sapphire Reserve Card: Coverage up to $10,000 per claim and up to $50,000 per card.
- Ink Business Cash® Credit Card: Purchase protection coverage up to $10,000 per claim and up to $50,000 per card.
- Ink Business Preferred® Credit Card: Purchase protection up to $10,000 per claim and up to $50,000 per card.
- Ink Business Unlimited® Credit Card: Purchase protection up to $10,000 per claim and up to $50,000 per card.
- Platinum Card® by American Express: Purchase protection up to $10,000 per claim and up to $50,000 per card.
What is covered by credit card purchase protection?
First, it’s important to note that credit card purchase protection times vary, in most cases between 90 and 120 days from the date of purchase. With this in mind, you should make sure you know your card’s policies and terms and that you file any applicable purchase protection claims before it’s too late.
Other details about protecting purchases with a credit card vary, including what is covered by the policy and what is not. To find out the exact coverage and exclusions for your credit card, you should read your card benefits guide right away.
For example, Chase Sapphire Reserve’s credit card purchase protection will replace, repair, or refund you up to $10,000 per claim, with a maximum benefit of $50,000 per year. However, the decision to replace, repair, or refund you the cost of the item will be “at the discretion of the Benefits Administrator,” Chase notes.
While various purchases are covered when you pay for a purchase in whole or in part with Chase Sapphire Reserve, Chase lists many exclusions, including the following:
- Animals and living plants
- Antiques and collectibles
- Boats, airplanes, cars and any other motorized vehicles and their accessories
- Software
- Items purchased for resale, professional or commercial use
- Items that mysteriously disappear
- Items lost in transit by a regular carrier
- Medical equipment
- Perishable Products and Consumables
- Rented or leased items
- Traveler’s checks and cash
- Used or used items
These are just a few of the items that Chase coverage excludes, but you get the idea.
Unless otherwise noted, Chase purchase protection applies to most items when you pay with a credit card or rewards points from your associated rewards account. This includes purchases made outside of the United States, as well as gifts if they do not fall under one of the excluded categories under this benefit.
However, please note that the example we have included covers protecting Chase purchases at Chase Sapphire Reserve. Your credit card purchase protection plan will likely have some nuances of its own, as well as the other exceptions listed. Be sure to read the terms and conditions of the credit card program to be sure.
How to File a Purchase Protection Claim
To apply for purchase protection, you usually complete an online application form on your credit card issuer’s website. You can also call to file a claim over the phone.
It all depends on the specific credit card you have, and most card issuers have a page on their website that gives precise instructions. For example, both American Express and Chase make it easy to file a claim online or over the phone.
To apply for purchase protection by phone or online, you will need the following information:
- Your name, address and phone number
- Purchase date
- Claim date
- Receipt for goods
- Reason for your request
- Your credit card number
- Supporting Documentation for Your Purchase Protection Statement
- Police report filed within 48 hours if your report is related to theft.
bottom line
Credit card purchase protection can help you recover damages when an item you bought stops working or is stolen within the first few months. To qualify for this important coverage, you just need to use the correct credit card to pay.
In the meantime, make sure you keep receipts for items worth claiming purchase protection for and keep track of coverage dates so you know when your purchase protection expires. If you find yourself in a situation where an expensive item is lost, damaged, or stolen, you’ll be glad you took the initiative when it comes to this important benefit.
Editorial disclaimer
The editorial content on this page is based solely on the objective judgment of our contributors and is not based on advertising. It was not provided or ordered by credit card issuers. However, we may receive compensation when you click on links to our partners’ products.