Credit Card Purchase Protection Explained

Purchase protection is a common credit card benefit that allows consumers to file a claim with their issuer to receive replacement, repair or reimbursement for any eligible stolen or damaged items. Major credit card networks, such as Mastercard and Visa, have different policies for purchase protection.

Consumers should understand their network’s policy to ensure that their products are covered in the case of an incident — especially when purchasing expensive electronics or furniture. Generally, claims for purchase protection can be filed online or by phone for all major credit card networks.

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Purchase protection comparison across major networks

While most major credit card networks offer purchase protection, the name of the feature may differ by company. The differences can impact the time credit card users have to submit claims, the length of time their purchase is covered and claim limits. For example, Mastercard calls it “purchase assurance,” while Visa refers to it as “purchase security.” We outline the differences across purchase protection programs by each card network in the table below.

It’s worth noting that purchase protection serves as secondary coverage, meaning you must first file a claim with your primary insurance. For example, if you have renter’s insurance, your credit card’s purchase protection will serve as secondary coverage. If someone breaks into your apartment and steals your laptop, then purchase protection will only cover the remaining difference.¹

American Express purchase protection

American Express has one of the best purchase protection policies out of the major card networks, thanks to its comprehensive policy offered on all of its personal cards. The maximum payouts will depend on the card, but the top cards offer up to $10,000 per claim and up to $50,000 per year.

While other networks limit purchase protection to damaged or stolen products, American Express includes lost items under coverage benefits for some of its cards. If you have a qualifying American Express credit card, your purchase protection will cover items purchased within 90 days. You have 30 days — or as soon as reasonably possible — to file a claim from the incident. You’ll need to check your card’s benefits guide to see if this benefits applies to you. Terms apply to American Express credit card offers. See americanexpress.com for more information.¹

Mastercard purchase protection

Whether you’ll receive purchase protection benefits with Mastercard will depend on your financial institution. To see if your card is eligible, be sure to check your benefits guide to see if purchase protection is available.

Similar to American Express, Mastercard’s purchase protection will cover your item up to 90 days from the purchase date. However, the individual claim limit is lower — you’ll receive up to $1,000 per claim or $50,000 per year. From the incident date, you have an additional 90 days to file your claim.

Visa purchase protection

Visa offers purchase security for Visa Signature and Infinite cards only. If your item is stolen or damaged within 90 days of purchase, this policy can replace, repair or reimburse you up to $10,000 per claim or $50,000 maximum per year. There are limitations to this policy, so be sure to read your card’s benefits guide for a full explanation of what’s excluded under purchase security. Items that are lost are not eligible for purchase protection.

Visa makes it very clear that if your item is stolen, you must file a police report within 48 hours. You’ll then want to notify your benefits administrator through your financial institution within 60 days of the incident — regardless if it’s theft or damage. You must complete the claims form and supply any necessary documentation within 90 days of the incident.

Purchase protection by credit card issuers

Now that we’ve gone through the major card networks, we take a look at purchase protection by credit card issuers. Besides American Express, Chase is the only financial institution that offers purchase protection on all of their credit cards — regardless if it’s a Visa or Mastercard. Meanwhile, some card issuers don’t offer purchase protection at all. The following table breaks down the credit card issuers that offer purchase protection — and if applicable, the cards come with this benefit.

In recent years, Barclays, Citi and Discover have eliminated purchase protection (among other shopping benefits) from all of their cards. Your best bet is to apply for any of the cards listed above, as they still come with this valuable benefit.

What’s covered under a credit card’s purchase protection?

A credit card’s purchase protection typically covers theft and damage to a tangible item within a specific time frame from when you purchased the item. For an item to qualify for purchase protection, you must buy it with the credit card that you plan on filing a claim under.

Damage coverage includes physical harm to an eligible item. For example, if you shatter your phone screen within 90 days of purchasing, then you can file a claim under your credit card network’s purchase protection policy — until the limits of the claim.

Purchase protection covers theft of any eligible items. Major credit card networks generally require a police report to be filed in the instance of theft. You must provide this supporting documentation along with your claims form.

Lost items typically aren’t covered under purchase protection. If you don’t remember what happened to your phone, but there was no specific incident — such as theft — then you aren’t typically covered under purchase protection. Only American Express covers lost items¹.

While major credit card networks offer terms and conditions for purchase protection, credit card issuers, such as Citi and Bank of America, can offer their customers altered policies. Consumers should ask the card issuer directly about what’s covered under their credit card.

How to file a purchase protection claim

Credit card users are recommended to file claims under their network’s purchase protection policy as soon as an item has been stolen or damaged. If the item was damaged, the consumer may be asked to return the eligible item as part of the claims process. We’ve listed common documents consumers will need to submit as part of a claim along with contact information to file a claim for purchase protection below:

• Claim form
• Credit card statement showing the record of purchase
• Insurance claim (if applicable)
• Insurance declaration page (if applicable)
• Original receipt from the place of purchase
• Police report (if filing a claim for a stolen item)

How is credit card purchase protection different from extended warranty coverage and price protection?

Purchase protection differs from other benefits offered by major credit card networks, such as price protection, extended warranty and return guarantee. While purchase protection offers coverage for theft and accidental damage within a limited time frame, these are other typical card benefits worth noting:

• Price protection is a benefit that allows the consumer to retroactively apply a lower price to an item that was purchased. If you bought a television today and in 30 days the price drops by $300, then the benefit would allow you to file a claim and receive the $300 difference.
• Extended warranty protection allows users to lengthen the time of coverage under an original manufacturer’s warranty. Extended warranty features cover the length of coverage and defects from the manufacturer, whereas purchase protection covers user damage.
• Return protection is a network benefit that extends the time consumers have to return an item. It also allows users to return an item even if purchased at a store with a no-return policy.

Best credit cards for purchase protection

Out of all the cards that offer purchase protection, here are our top picks. On top of excellent travel benefits, the following cards come with comprehensive purchase protection policies that competing cards lack.

LendingTree’s verdict

Purchase protection is an underrated yet valuable benefit offered on many credit cards. Knowing how to leverage this benefit correctly could potentially help you save thousands of dollars per year, as many of the major network issuers allow you to file claims up to $50,000 in a calendar year. You can speed up the claims process by providing all the necessary documentation, helping you gain your reimbursement as quickly as possible.

American Express insurance footnote:

Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

To see rates & fees for American Express cards mentioned on this page, visit the links provided below:

• American Express^® Gold Card
• The Platinum Card^® from American Express

For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

The information related to the Chase Freedom Flex℠, IHG One Rewards Premier Credit Card, Ritz-Carlton Rewards Credit Card and Wells Fargo Visa Signature® Card has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.