How to Take Advantage of Credit Card Benefits: Purchase Protection

Credit card purchase protection is rarely one of the benefits touted by the credit card companies. However, most major card issuers offer this service, which protects you against loss or damage of items purchased with a card for up to 90 days. Numerous restrictions exist as to the type and dollar amount of coverage, but most commonly, purchased items valued at $500 to $1,000 are covered. Card companies typically limit the annual protection amounts to between $25,000 and $50,000 per cardholder.

Difficulty:

Moderate

Instructions

1. Purchase an item using a credit card that offers purchase protection. The purchase protection benefit offered by many credit card issuers is usually only valid on purchases made with that company's credit card. If you split your purchase among two or more cards or if you paid cash for part of your purchase, the most reimbursement you can typically hope for is the amount you paid using that company's credit card only.

2. Document your loss. For your credit card company to offer compensation under a purchase protection plan, the burden is on you to demonstrate that you both purchased the item and that it was stolen or damaged. Proving that you purchased the item should be as simple as gathering your credit card transaction records, but documentation of theft or loss typically requires concrete evidence such as a police report.

3. Call the customer service number of your credit card company. You can usually find this on the back of your credit card or on the issuer's website. Some firms may have a dedicated number for purchase protection assistance.

4. Provide the requested documentation. The customer service agent will outline the specifics of how to proceed in a purchase protection case. Keep your original documentation and send copies to the credit card company according to the directions of the customer service agent.

5. Submit a claim online. Some companies, including American Express, offer purchase protection claim service online. Enter your card number and follow the prompts to see if you can complete your claim action online.

References

• Bankrate: Disputing A Credit Card Purchase; Leslie McFadden; April 27, 2010
• American Express: What Is Purchase Protection?
• Credit Card Guide: Nine Credit Card Deals You Never Knew You Had; Eva Norlyk Herriott; May 22, 2009
• MSN Money: Your Six Secret Credit Card Perks; Aleksandra Todorova
• American Express: Welcome to the American Express Claims Center