What is Purchase Protection on Credit Cards?
Purchase protection enables you to replace items purchased using your credit card when the said item is stolen, damaged, or lost. It is similar to insurance, while purchase protection is facilitated via your credit card. Nevertheless, not all credit cards offer purchase protection, which makes it imperative for you to choose a credit card that offers this benefit.
Introduction to Purchase Protection
Your credit card helps you recover your money when purchases go wrong, provided you choose the right credit card. Referred to as purchase protection, it enables you to repair, replace damaged or stolen merchandise bought using a credit card.
In some cases, purchase protection may also help you reimburse the damaged item for its purchase price. While not all credit cards have a purchase protection facility, it is essential to use cards offering this facility for insuring the items.
How to Claim a Credit Card Purchase Protection?
As one of the common credit card features, purchase protection allows the cardholder to file a claim on eligible purchases, which are damaged or stolen for replacement, repair, or reimbursement.
Nevertheless, the purchase protection policies and features differ from one credit card network to another. However, irrespective of the credit card network, whether MasterCard or Visa, we have listed the typical steps involved in claiming purchase protection on a credit card.
The list of documents to file for purchase protection on your credit card
- A listed store receipt of your purchase.
- Statement of the credit card highlighting the purchase transaction.
- In the case of the stolen item, a report like an FIR or NCR.
- Any documents featuring the clause that supports purchase protection for eligible items as a feature of your credit card.
Purchase protection on credit card claiming process
Typically, to begin the claims process, you must contact the consumer service while the number can be found on your credit card.
Another option is to run an online search for your credit card network or the card-issuing bank’s purchase protection online claim form.
As soon as you gain access to the claim form, fill it online, or take a printout. Depending on the network or instructions provided over call or online, you can either post it or email it to the address provided.
Note: Once you have realized that the item purchased with your credit card is missing or damaged, file for purchase protection immediately.
What are the Benefits of Credit Card Purchase Protection?
Credit card purchase protection can help to cover the cost of your eligible purchase when:
The item purchased is faulty or damaged, while it is not available for a refund or replacement via the retailer.
The purchased merchandise when it arrives isn’t the same as the online description. When the item isn’t delivered after purchasing it via your credit card.
Note: An item in purchase protection could be a computer, but not a software, furniture, a flight, or a holiday, but not antiques and gift cards, which you have paid for using your credit card.
List of top credit card companies who provide purchase protection
While there are many credit card networks, the banks issuing the credit cards also play a significant role in determining the purchase protection terms. Thus, before signing up for a credit card, it is essential to read the terms and conditions or fine prints.
Typically, purchase protection is a common feature for most MasterCard, Visa, and Amex cards.
Conclusion
While purchase protection is like an insurance claim, it applies only when your credit card network supports the feature. Make sure you choose the right credit card, which is eligible for a purchase protection claim.
