Guide to Credit Card Purchase Protection: What It Is, How it Works and Best Cards

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This is one of the most under-utilized credit card benefits! Most people don’t even know they have it or what it is. Even better — cards that offer this often also have another great benefit — extended warranty protection! Katie used this benefit when her new phone was stolen in Thailand and got a full reimbursement. When she went to replace it, the new phone was even on sale for Black Friday so she even came out ahead financially. Read on to make sure you have this benefit on at least one of your cards.

Table of Contents

    What is credit card purchase protection?

    Purchase protection, or purchase security, is a credit card benefit that offers, at a minimum, theft and damage insurance for items purchased with an eligible credit card. It automatically covers all eligible purchases on your card, with no product registration or extra steps necessary.

    credit card purchase protection

    The purchase protection benefit reimburses cardholders for eligible items that were charged to their card and/or purchased with rewards associated with that card’s account. Cardholders can be reimbursed for the replacement or repair of eligible purchases.

    Not all credit cards offer purchase protection and not all items are eligible for coverage. That’s why it’s important to read your credit card’s guide to benefits to see what your credit card coverage includes.

    How is credit card purchase protection different from other credit card protection benefits?

    Credit cards offer a variety of types of protection for items purchased on an eligible card.

    Some of these benefits include purchase protection, extended warranty protection, price protection, and return protection. These protections give consumers confidence in their purchases, enabling them to get reimbursed if things go wrong or they aren’t satisfied and are unable to be reimbursed through other methods within a given timeframe.

    Purchase protection and extended warranty protection are more common credit card benefits. A lot of our favorite travel cards include these coverages. Purchase protection covers theft and accidental damage for a 90-120 days after purchase. On the other hand, extended warranty coverage extends the warranty of items beyond the manufacturer’s warranty.

    Other, less common, protections include price protection and return protection. Price protection allows customers to retroactively apply a lower price to an item that was purchased and return protection allows customers to return items even if the store has a no-return policy.

    What is covered by credit card purchase protection?

    Purchases covered by purchase protection

    Typically, credit card purchase protection covers retail purchases of personal property and gifts purchased with an eligible card. Most credit card issuers also stipulate that the item must have been purchased new.

    For all of the cards below, purchases must be made with either an eligible card or rewards points associated with the covered account.

    Credit CardCoverage period (from date of purchase)Type of purchaseType of event
    American Express Platinum/Gold90 days “Tangible item of property for personal or business use or as a gift.”-Damage
    -Loss
    -Theft
    Capital One Venture90 days-New retail purchases
    -Personal property
    -Includes gifts purchased for friends and family
    -Damage
    -Theft
    Capital One Venture X90 days-New retail purchases
    -Personal property
    -Includes gifts purchased for friends and family
    -Damage
    -Theft
    Chase Sapphire Preferred120 days-New retail purchases
    -Personal property
    -Includes gifts purchased for friends and family
    -Damage
    -Theft
    -Involuntary and accidental parting
    Chase Sapphire Reserve120 days-New retail purchases
    -Personal property
    -Includes gifts purchased for friends and family
    -Damage
    -Theft
    -Involuntary and accidental parting
    Citi Premier90 daysNot specified-Damage
    -Theft
    What’s covered by credit card purchase protection?

    Purchase protection exclusions

    It’s a lot easier to address what purchases are excluded from purchase protection than what items are covered. Your credit card’s guide to benefits will include a full list of exclusions.

    The list of exclusions is lengthy and varies somewhat between credit cards and credit card issuers.

    Common items that are excluded from coverage include, but are not limited to:

    • Animals and living plants
    • Antiques or collectibles
    • Motorized vehicles and their parts
    • Computer software
    • Items purchased for resale, professional, or commercial use
    • Medical equipment
    • Perishable or consumable items
    • Traveler’s checks, cash, tickets, credit or debit card
    • Used or pre-owned items
    • Real estate and items intended for real estate
    • Rented and leased items

    Events covered by credit card purchase protection

    Most commonly, purchase protection covers damage and theft to eligible items purchased with an eligible credit card. Additionally, some American Express cards cover losing property and some Chase cards cover “accidental and involuntary parting” of an item.

    Theft

    Credit card issuers offer purchase protection coverage in the event of the theft of eligible personal property within a certain number days from when the item was purchased. The number of days varies by credit card but it typically between 90 and 120 days.

    When Katie traveled to Thailand in 2019, she had her cell phone stolen. Since she had purchased the cell phone within 90 days with an eligible card, she was able to file a purchase protection claim through her credit card and get reimbursed for the phone.

    When you file a claim for a stolen item, you will typically need to file a police report for the theft promptly (within 48 hours) after the incident. You will be required to include a copy of the police report with your purchase protection claim.

    Damage

    Under a credit card’s purchase protection coverage, eligible personal property that has been damaged within a certain number of days from the date of purchase is covered. Not all types of damage are covered, so refer to your guide to benefits or call your credit card issuer to find out what types of damage or policy excludes.

    Lost items

    Most credit card issuers exclude lost items from their purchase protection policies. However, some American Express cards cover lost items.

    Accidental and Involuntary Parting

    Some Chase cards, including the Sapphire cards, include purchase protection coverage for “accidental and involuntary parting.” They define this to mean “the unintended separation from an item of personal property when its location is known, but recovery is impractical to complete.”

    Exclusions

    Just like there are a lot of types of types of purchases excluded from purchase protection, there are also a lot of exclusions as to the where and how the item is damaged or stolen. Common exclusions include, but are not limited to:

    • Broken items
    • Items damaged by weather
    • Items stolen from cars, other vehicles, or common carriers
    • Items that “mysteriously disappear”
    • Items with a common carrier, including an airplane or delivery service
    • Hostilities such as war or terrorism
    • Misused or abused items
    • Items confiscated by authorities
    • Normal wear and tear
    • Acts of God (including floods, hurricanes, lightning, earthquakes)
    • Checked baggage

    How to file a purchase protection claim

    Confirm coverage in your guide to benefits

    Credit cards from all the major credit card companies offer purchase protection, but not all cards include this benefit.

    To find out if your card offers purchase protection, read through your card’s guide to benefits, which will explain the exact policy in detail. This guide is mailed to you with your card, but can also usually be found online if you search for your card’s guide to benefits. I’ve linked the guide to benefits for some of the most popular cards in the table above.

    Keep in mind that credit card purchase protection is secondary. This means that if you have a primary insurance policy covering the item, you must file a claim with your insurance company before submitting a claim through your credit card.

    Once you know the details of your credit card’s purchase protection policy – including coverage limits and exclusions – you can start your claim in the event of an eligible incident.

    Since there are time limits on how long you have to file your purchase protection claim, start the process as soon as possible. To do this, you’ll need to follow the steps outlined in your guide to benefits.

    purchase protection time limits

    Check the time limits for making claims for credit card purchase protection

    Your credit card policy will outline your maximum coverage and any time limits for filing a claim under the purchase protection benefit. These time limits vary by card, but time limits to keep in mind include:

    • Timeframe since item’s purchase date
    • Timeframe from incident to file a start a claim
    • Timeframe to file a police report, if the item was stolen
    • Timeframe to submit proof of loss documents
    • Timeframe to receive reimbursement
    Credit CardMaximum coverage amountHow long to file a claim
    American Express Platinum/Gold-$10,000 per purchase
    -$50,000 per year
    -$500 for natural disaster
    -30 days to file Notice of Claim
    -60 days to submit proof of loss
    Capital One Venture-$500 per claim
    -$50,000 per cardholder
    -60 days after event to start claim
    -Claim form and documentation due within 90 days of event
    Capital One Venture X-$10,000 per claim
    -$50,000 per cardholder
    -60 days after event to start claim
    -Claim form and documentation due within 90 days of event
    Chase Sapphire Preferred-$500 per claim
    -$50,000 per account
    -90 days after event to start claim
    -Claim form and documentation due within 120 days of event
    Chase Sapphire Reserve-$10,000 per claim
    -$50,000 per year
    -90 days after event to start claim
    -Claim form and documentation due within 120 days of event
    Citi Premier-$10,000 per claim
    -$50,000 per year
    -Submit all requested documents with 180 days of event

    Submit required documents when filing a claim for credit card purchase protection

    When filing a claim for credit card purchase protection, you will need to submit copies the following documents, as applicable:

    • completed and signed claim form,
    • an itemized store receipt showing the date of purchase and the account it was purchase with,
    • your credit card statement showing the posted transaction,
    • policy report or fire report (if applicable),
    • an repair estimate or receipt (if applicable)
    • a copy of the claim settlement from your primary insurance company (if applicable),
    • any other documentation needed to substantiate your claim.

    What to expect after filing your purchase protection claim

    Once you’ve submitted your purchase protection claim, your credit card provider will evaluate your claim and make a decision. Generally, the credit card company will contact you within a few weeks to let you know if your claim has been approved or denied.

    If your claim is approved, you will receive a refund for the cost of the item or a replacement item or reimbursement for repairs.

    If your claim is denied, you may be able to appeal the decision. Find out why the claim was denied and, if you don’t agree with the decision, talk to the benefits administrator about options for appealing the denial

    Our favorite cards offering credit card purchase protection

    Our favorite credit cards don’t just provide high sign up bonuses, but most of them also have other benefits, including purchase protection.

    When you are purchasing an item of value, be sure to use a card that includes purchase protection and/or extended warranty protection.

    Capital One Venture card
    Capital One® Venture® Rewards Credit Card – Limited time 75,000 mile offer
    • $95 annual fee
    • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
    • Miles can be redeemed to erase any travel purchase. 50,000 miles = $500
    • Can be transferred to a variety of partners like Jet Blue, Wyndham, Avianca, Turkish Airways and more
    • Also worth considering the Venture X which has more benefits and the same offer.

    Capital One Venture X
    Capital One® Venture X Rewards Credit Card: Earn 75,000 bonus miles
    • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
    • $395 annual fee
    • $300 annual travel credit when booking through Capital One’s portal
    • 10,000 points every year on account anniversary (worth at least $100)
    • Statement credit for Global Entry or TSA Precheck
    • Easy airport lounge access for your whole family
    • Miles can be redeemed to erase any travel purchase. 75,000 miles = $750
    • Can be transferred to a variety of partners like Jet Blue, Wyndham, Avianca, Turkish Airways and more.
    • Get our downloadable checklist here so you can max your benefits
    Chase Sapphire Preferred® Card – Learn how to apply
    • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
    • $95 annual fee
    • Ultimate Rewards points can be transferred to a variety of partners like Southwest, Hyatt, United, and more!
    • You can also redeem points through the Chase Travel Portal. 60,000 points = $750 of travel
    • Great option for booking all-inclusive resorts or hotels in Hawaii.
    Chase Sapphire Reserve®
    • $550 annual fee
    • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. 
    • $300 travel reimbursement. This is automatic credit for any hotel, airfare, parking, car rental, etc.
    • Fee reimbursement for Global Entry for 1 person (which is $100). This benefit is available once every 4 years.
    • Airport lounge access for primary card user and 2 guests traveling with them through Priority Pass
    • Premium Trip insurance: If your flight is delayed 6 hrs or more for any reason they will reimburse you up to $500 for hotels, food, etc. — as long as you pay for at least a portion of your fare with the card (like taxes).
    Citi Premier Offer
    Citi Premier® Card

    Editorial Disclosure – Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

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