How does credit card purchase protection work? Here’s what you need to know before you make a claim (2024)

Many credit cards come with perks beyond earning cash back or rewards points. Some include purchase protection, which helps cover the cost of repairing or replacing belongings bought with the card.

How much protection you have depends on the specific card: Most cover items for the first 60 or 90 days after purchase but the Chase Freedom Flex℠ card offers protection against damage or theft for 120 days, with a cap of $500 per claim and $50,000 over the lifetime of the card.

There's no annual fee and new cardholders enjoy a 0% introductory APR for the first 15 months on purchases and balance transfers (with a variable APR of 20.49% to 29.24% afterward).

Chase Freedom Flex℠

  • Rewards

    5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%), 5% cash back on travel booked through the Chase Ultimate Rewards®,3% on drugstore purchases and on dining (including takeout and eligible delivery services),1% cash back on all other purchases

  • Welcome bonus

    Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening.

  • Annual fee

    $0

  • Intro APR

    0% for the first 15 months from account opening on purchases and balance transfers

  • Regular APR

    20.49% - 29.24% variable

  • Balance transfer fee

    Intro fee of either$5or3%of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either$5or5%of the amount of each transfer, whichever is greater.

  • Foreign transaction fee

    3%

  • Credit needed

    Excellent/Good

  • Member FDIC. Terms apply. Information about the Chase Freedom Flex℠ has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

Read our Chase Freedom Flex℠ review.

If you want more coverage, the American Express® Gold Card is a great option: Cardholders can receive up to $10,000 per purchase and $50,000 per account for damage or theft that occurs within 90 days of purchase.

American Express® Gold Card

On the American Express secure site

  • Rewards

    4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases

  • Welcome bonus

    Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.

  • Annual fee

    $250

  • Intro APR

    Not applicable

  • Regular APR

    See Pay Over Time APR

  • Balance transfer fee

    N/A

  • Foreign transaction fee

    None

  • Credit needed

    Excellent/Good

  • See rates and fees, terms apply.

Read our American Express® Gold Card review.

Understanding how your card's purchase protection works before you need it is important. Here's what you should know before filing a claim.

What we'll cover

  • What is and isn't covered by purchase protection
  • How to file a purchase protection claim
  • Which credit card companies offer purchase protection
  • Bottom line

What is and isn't covered by purchase protection

Obviously, an item must have been bought with a credit card that offers a protection plan to be covered by it. Each plan has a set amount of time a purchase is covered, a set dollar amount that will be paid and a limit on how much the cardholder can claim in a calendar year or over the lifetime of the account. (Check your card's benefits guide to see which applies.).

Some cards only cover theft or damage and not loss. Items purchased abroad can often qualify for coverage.

These items are typically not covered by credit card purchase protection plans:

  • Vintage or antiquegoods
  • Plants and animals
  • Perishables
  • Cars
  • Boats
  • Software
  • Gift cards
  • Event tickets

How to file a purchase protection claim

Purchase protection is best used if you don't have homeowners or renters insurance or the item isn't covered by your policy. In some cases, it's not the right move to file a homeowners or renters insurance claim —generally, it's best to avoid claims that are equal to or less than the deductible.

Since the item is only covered for a limited time, you'll want to work quickly. You'll need the following documents to file a claim:

  • The receipt from the retailer you bought the item from
  • A credit card statement showing the purchase
  • A repair estimate if the item was damaged
  • A police report if the item was stolen

If you're required to file an insurance claim, you'll likely need to also provide a copy of the claim settlement and your insurance declarations page, as well as any other relevant paperwork.

Which credit card companies offer purchase protection?

While the timeframe and dollar amount covered varies depending on the individual card, American Express, Visa and Mastercard all offer purchase protection plans. Discover does not currently offer purchase protection.

  • You can manage Visa purchase protection claims on the card benefit services site or by calling 888-221-3289.
  • American Express claims can be made on the Amex website or by calling 800-228-6855.
  • Mastercard claims can be made through My Card Benefitsor by calling 636-722–8883.

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Bottom line

Credit card purchase protection can come in handy if an item is damaged or stolen soon after you buy it. But there are limits on what is covered, when you can file a claim and how much you can be reimbursed, so it's important to study your card's policy before you need it.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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For rates and fees of the American Express® Gold Card, click here.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

How does credit card purchase protection work? Here’s what you need to know before you make a claim (2024)

FAQs

How does credit card purchase protection work? Here’s what you need to know before you make a claim? ›

Purchase protection typically provides coverage for recently purchased items in case they are damaged, lost, or stolen. If something happens to the item within a specified time frame (usually 90 days or so), you can file a claim with the issuer of your credit card, and they may reimburse you for the item's cost.

How does credit card purchase protection work? ›

Typically, credit card purchase protection applies to purchases you make with your credit card for a specific amount of time. With this important coverage, you can be reimbursed for an item or receive a replacement if your purchase is damaged or stolen, usually within 90 to 120 days.

How does credit protection work? ›

Credit insurance — also sometimes called payment protection insurance, credit card insurance, creditor's insurance, or credit protection insurance — refers to protection for credit card or loan payments in the event that you're unable to make payments due to an unexpected financial or personal setback, like job loss.

How does using a credit card provide you with protection? ›

Purchase protection is a benefit provided by credit cards to reimburse you if a transaction goes wrong. This can include repairing or replacing a damaged or missing item or even one that doesn't work as promised. It's especially valuable today, as so many purchases take place online.

What protection do you get with a credit card? ›

Credit card payment protection

This means that if there's an issue with the product you've bought or the company you've bought from goes into administration, the credit card company has equal responsibility to make sure you're not left out of pocket.

How do I claim credit card purchase protection? ›

To claim card loss with credit card purchase protection, you must fill out a form that provides all the necessary information and include your credit card statement and a police complaint FIR report before sending them to CPP.

How do I claim purchase protection? ›

How to file a purchase protection claim
  1. The receipt from the retailer you bought the item from.
  2. A credit card statement showing the purchase.
  3. A repair estimate if the item was damaged.
  4. A police report if the item was stolen.
Jan 30, 2024

Is payment protection worth it? ›

Do I need payment protection insurance? Payment protection insurance is worth considering if you think you wouldn't be able to make your loan, mortgage or credit card payments if you have to stop working. However it might not be necessary if you have savings or other sources of income on which you can rely.

What does payment protection cover? ›

Payment Protection Insurance, otherwise known as PPI, is an insurance policy that is available to protect you on loan or debt repayment, in the event that you are unable to meet the regular repayments, perhaps due to illness, an accident, or unemployment.

How long does credit card protection last? ›

There's usually no minimum spend required for a debit card or credit card purchase to be covered by chargeback, but there are time limits. You'll typically have 120 days from the date of the transaction to contact your bank to make a claim.

How do I know if my credit card has purchase protection? ›

Check your card's terms and conditions: Before making a purchase, familiarise yourself with the terms and conditions of your credit card's purchase protection. Understand the coverage limits, eligible items, and the duration of protection.

Do we really need card protection plan? ›

If you have a large amount of debt that you're working to pay down, it may not be a bad idea to have credit card protection insurance. In case of emergency, it would allow you to suspend your credit card payments for a time and prioritize debt that can't be suspended.

What are the 5 C's of credit? ›

Lenders also use these five Cs—character, capacity, capital, collateral, and conditions—to set your loan rates and loan terms.

Can my credit card company help me get a refund? ›

You could also try to dispute the charge with your credit card issuer if, for example, your package was never delivered or if you suspect a fraudulent charge on your account. The issuer will then investigate the dispute and refund you the full amount if your claim is valid.

What is the Section 75 rule? ›

What is Section 75? It's part of the Consumer Credit Act 1974 that means your credit card provider is jointly and severally responsible for any breach of contract or misrepresentation by a retailer or trader.

Can I claim on my credit card when something goes wrong? ›

While it isn't a legal protection, it is part of Visa, Mastercard and Amex's own rules, so it applies to any purchase made with a debit, credit or charge card. It allows the card provider to reverse a payment you've made to a retailer if it agrees you've a legitimate complaint.

Can I get a refund if I paid by credit card? ›

Claiming a refund on something you've purchased with your credit card should be straightforward, particularly if you haven't used the goods or services you bought. Contact the retailer and provide them with the details of the credit card you used to make the purchase. Have your receipt to hand.

How do I file a claim with Capital One purchase protection? ›

How to File a Purchase Protection Claim with Capital One
  1. Call the Benefit Administrator at $50,000, or the number in your card's benefits guide, within 60 days of the incident.
  2. File a police report within 48 hours of the incident, if the item was stolen.
  3. Submit a completed claim form within 90 days of the incident.
Feb 11, 2024

Can I claim on my credit card for accidental damage? ›

What Is Purchase Protection? Purchase protection will reimburse you to replace an eligible item you've purchased if it's lost, stolen or damaged accidentally within a predetermined period—typically 60 to 120 days. Depending on the card and its issuer, the terms and limits can vary.

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