What is Purchase Protection? How Your Card Can Help Reimburse Certain Purchases

Credit cards and some prepaid and debit cards offer a benefit known as purchase protection to help cardholders replace, repair, or receive reimbursement for items that have been stolen or accidentally damaged within a specified period of time after purchase. 

You may think you don’t need a card that offers purchase protection, but it could provide help if you’re a victim of theft or when something you spent a lot of money on sustains damages. 

Spending a few minutes familiarizing yourself with purchase protection plans and which card networks offer them could save you money and help you avoid frustration in the future.

Credit card purchase protection is a feature offered by many credit card issuers that helps safeguard purchases against theft, loss, or accidental damage for a specific period, typically 60 to 120 days from the purchase date. If an eligible item is damaged or stolen, cardholders can file a claim with their credit card issuer to seek reimbursement, repair, or replacement of the item.

The coverage often comes with exclusions and limitations, such as caps on reimbursement amounts, ineligible items (like perishables or used goods), and requirements to provide documentation, such as receipts or police reports in cases of theft.

But not all coverage is the same. Issuers and networks offer all sorts of benefits to attract consumers, but not every card comes with purchase protection and those that do have varying policies. 

How to Tell if Your Card Has Purchase Protection

Have you ever tried to put together a complex toy for a child without consulting the instructions the toy’s manufacturer provided? If so, you may have regretted ignoring those instructions when assembling the toy didn’t go as smoothly as you thought it would.

Card agreements aren’t the most exciting reads you’ll ever come across, but they lay out the details of your card’s benefits and other terms. Some may have supplemental benefit guides or purchase protection plan documents that spell out the terms and conditions of such perks.

There, you’ll find information about your card’s purchase protection policy, including what the network covers and how much coverage you can access.

By the way, you’ll notice the use of the terms “networks” and “issuers” in this article. Issuers are companies or banks that provide you with a debit card when you open a checking account. 

Networks create the payment infrastructure that allows a merchant to accept a card payment and be compensated for it. Networks and issuers partner together behind the scenes to create a smooth payment process for both merchants and cardholders.

Most major card networks, including Visa, American Express, and Mastercard, offer some sort of purchase protection on their cards (including prepaid and debit cards), but only some issuers offer the perk (and often only on certain credit cards). 

PayPal is one notable exception, as the company has its own purchase protection program that it offers to cardholders who use its co-branded debit cards.

If you’re in the market for a new card and purchase protection is an important feature to you, just read the fine print to make sure the card you want offers the benefit. And if you decide on a prepaid or debit card, read the terms closely to ensure your card has coverage.

Common Types of Items Covered

Cards that offer purchase protection don’t cover all the types of items you can buy. But it’s important to review your card’s policy to learn exactly what types of purchases are covered.

What isn’t included in most purchase protection plans? A lot. Computer software, used items, some types of medical devices, and, in some cases, items purchased for professional use are usually excluded. 

Here is a list of some more commonly excluded items, but they can vary by network and issuer:

• Animals and living plants
• Antiques and collectible items
• Any motorized vehicles and their motors, equipment, or accessories
• Broken items, unless damage is the result of a covered occurrence
• Computer software
• Baggage, unless hand-carried and under your personal supervision or the supervision of a traveling companion whom you know
• Items damaged as a result of weather other than lightning, wind, hail, rain, sleet, or snow
• Items purchased for resale, professional, or commercial use
• Items stolen from automobiles and other vehicles or common carriers
• Items that are lost or that mysteriously disappear
• Items under the care and control of a common carrier
• Medical equipment
• Perishables, consumables, and limited-life items
• Product defects
• Real estate and related items
• Rented or leased items
• Theft or damage resulting from abuse, fraud, or hostilities of any kind
• Theft or damage resulting from misdelivery or voluntarily parting with the property
• Traveler’s checks, cash, tickets, credit or debit cards, and any other negotiable instruments
• Used or pre-owned items

Credit card purchase protection typically covers only damage or theft to a physical item that has occurred within a certain time frame, often up to 90 days after purchase. 

If you have an incident eligible for purchase protection, file a timely claim. The clock is ticking when it comes to claims, as many card networks require you to file a claim within 30 to 120 days after an item is damaged or stolen.

In instances of theft, card networks stipulate you file a report with the police. Hang on to your copy of the police report, as your card company will likely require you to send a copy of it to them when you file your claim.

Prepaid and debit cards that offer purchase protection may have different coverage levels and requirements, so your cardmember agreement or benefit guide should be a go-to resource to determine what is covered.

You probably heard the phrase “it doesn’t hurt to ask” when you were young. I’d advise you to follow that advice when determining what is and isn’t included in a specific purchase protection plan. 

Lost items typically aren’t included in any purchase protection plans, although some exceptions for misplaced items, namely with American Express, exist. 

If you’re not sure whether something is covered under your card’s purchase protection plan, call your credit card company and speak to someone. 

Network Limits Associated with Purchase Protection

Your card issuer or network may offer purchase protection for free, but some cards with this benefit charge an annual fee. For example, Visa Infinite credit cards may provide a slew of benefits, including purchase protection (called purchase security), but cardholders can expect a hefty annual fee just for owning the card.

Discover doesn’t offer purchase protection on its credit cards, but let’s take a look at the claim amounts and coverages a few of the other major credit card networks provide for purchase protection:

• American Express: American Express, which is both a network and an issuer, offers up to $10,000 per claim, depending on the credit card you own. Cardholders can submit up to $50,000 in claims annually. American Express also may extend purchase protection for up to 90 or 120 days for some cards after an item was purchased, provided the cardholder submits their claim within 30 days after a qualifying incident. If you own the Serve® American Express® Reloadable Prepaid Card, coverage is limited to $1,000 per claim, and you may be required to send the purchased item to American Express for verification.
• Mastercard: Mastercard’s purchase protection typically allows credit cardholders to submit claims of $1,000 with a maximum of $50,000 in claims per year. The plan covers items damaged or stolen within 90 days after purchase, but Mastercard gives cardholders a little more time — 60 days — after an incident to submit their claim. Mastercard also offers purchase protection on some of its debit cards, including the World Debit Mastercard® and the Enhanced Debit Mastercard.
• Visa: Visa allows Infinite and Signature credit cardholders to submit purchase protection claims for items purchased within 90 days of filing for a claim, and it gives them up to 90 days after an incident to do so. Visa may reimburse individual claims of up to $10,000 for certain cards and total claim amounts of $50,000 each year. Visa also may offer limited coverage on some of its prepaid and debit cards, but you’ll have to do some research to determine which cards may include coverage. 

These are the broad strokes of network policies, and your situation may be unique. At the risk of sounding like a broken record, I urge you to review a card’s terms and conditions before you apply.

If variety is the spice of life, then consumers’ card choices, including prepaid, debit, and credit, could season an entire buffet. Each card has its own unique benefits. 

And while some offer benefits that look similar, the conditions surrounding them may differ.

Variations in Coverage 

Cardholders don’t usually select a new card of any type based solely on its purchase protection program. But when cards offer similar advantages, a solid purchase protection component can make one stand out.

While most American Express cards offer purchase protection, Visa and Mastercard march to the beat of their own drums when it comes to this benefit. 

Mastercard’s purchase protection offerings may differ depending on the financial institution the company is partnering with to issue its cards. If you’re considering applying for a Mastercard credit card or using one as a debit card, review the details to determine whether the card comes with purchase protection and with what terms.

Visa reserves most of its purchase protection benefits for its more premium credit card offerings. Both Visa Signature and Infinite cards come with the feature, though the specifics can differ depending on card type. 

For example, the Visa Infinite cards, which are the most prestigious level of credit card the company offers, typically offer far more in the way of purchase protection benefits than even Visa Signature credit cards.

If you have a prepaid or debit card from Visa or Mastercard, expect any potential purchase protection benefits to be fairly limited.

Differences in Covered Item Categories

If purchase protection sounds like something that could enhance your life, be vigilant when selecting a card to ensure its plan aligns with your habits. Those prone to losing things may want to consider an American Express card that offers protection for lost items, as Mastercard and Visa purchase protection doesn’t extend to lost items. 

Not every American Express card covers lost items, so be sure to read card disclosures if that benefit is important to you.

Even some of the standard debit and credit cards Mastercard and Visa offer don’t come with purchase protection, but premium tier credit cards that some issuers offer may feature the benefit. Be mindful of the costs associated with premium cards before applying for one. These can include annual fees well into the hundreds of dollars.

Claims Process Efficiency

Imagine you took the time to find a card with the benefits, including a purchase protection policy, that suits you and your finances. Then, a few months later, you experience a qualifying incident, and you want to access the benefits of purchase protection. What do you do?

First, cardholders need to complete and submit a claim, which can be done online. As part of the process, you may need to supply copies of an insurance claim or police report, if applicable, and the receipt showing proof of purchase.

To help you get started filling your claim, here’s the contact information for American Express, Mastercard, and Visa:

American Express

• Phone number: 1-800-228-6855
• File a claim online: customer portal

Mastercard

• Phone number: 1-800-672-8372
• File a claim online: customer portal

Visa

• Phone number: 1-888-221-3289
• File a claim online: customer portal

Take action as you can to ensure you meet your card’s timeline for submitting purchase protection claims. And don’t be afraid to contact your card company to check your claim’s status. 

I scoured the internet for customer reviews of experiences filing claims for purchase protection. Many cardholders had unique circumstances surrounding their claims, but most recommended those filing a claim submit complete and accurate information and be persistent in communicating with their network or issuer.

In addition to the financial insurance that purchase protection provides, it can also reduce the stress and hassles that accompany broken valuables and being the victim of theft.

Financial Security for Purchases

In a perfect world, people wouldn’t need purchase protection because things wouldn’t break and thieves wouldn’t exist.

But until we achieve perfection on Earth, insurance plans and purchase protection programs are there to help us when things go wrong.

You may never need to use your purchase protection benefit, but the peace of mind it brings can be priceless.

You can also save money by not purchasing warranties for items if they are covered under your card’s purchase protection plan.

Convenience of Filing Claims

Filing a claim for your damaged or stolen product probably isn’t how you want to spend your free time. But at least the conveniences of modern life make it simple.

Filing a claim online allows you to have a digital record of your claim that you and your credit card company can access whenever necessary.

Card companies also use sophisticated online tools and interfaces to make the process as streamlined as possible. Though having your claim resolved won’t happen overnight, card companies want to bring the process to a satisfactory conclusion within a reasonable time frame. 

In an era where customers can blast negative reviews to thousands of online followers within mere minutes, it’s in a company’s best interest to respond quickly to customers and provide them with a good experience.

Extended Product Life

When we buy something we value — food excluded — we usually want it to last for a while.

Purchase protection plans may extend the life of products that are damaged within a certain time frame, allowing you to enjoy them longer.

Some people may avoid purchasing luxury items, not because they don’t see their worth, but because they’re worried the items will break, and their money will have been wasted. 

Purchase protection programs can give customers the confidence to purchase high-quality items because they know they have options in the event the item is damaged or stolen. 

Have you ever seen a football player who is about to score, but they start celebrating before they reach the end zone and lose the ball in the process? That must be a very embarrassing and disappointing experience.

That’s why you should follow the advice below to make sure you don’t fumble your claim at the last second when you are on the way to receiving purchase protection benefits.

Understanding Policy Terms and Conditions

You may have noticed a few times throughout this article where I advised you to review your card’s agreement to make sure you understand its policies around purchase protection. Well, this is the last time — please take that step. 

Not only are features different if you have a prepaid, debit, or credit card, but issuers and networks also change their benefits from time to time. You may research cards for weeks before you apply for one, and a card’s protection program could change in the meantime.

Cardmember agreements and benefit guides can be full of financial terms and legalese, so reach out to a customer service department if you come across language in a card’s disclosures that isn’t crystal clear. 

While you have them on the line, feel free to ask other questions that can clarify how their purchase protection benefit can help you.

Keep Receipts and Documentation

Hang on to your receipts for at least 120 days after you purchase an item that is eligible for purchase protection. Your card company will require you to submit a copy of your receipt as part of your claim.

You may also want to take photos of items immediately after purchasing them so you have visual documentation of how they appeared in their original state.

Card companies may not require photographs of items, but pictures can help you when there’s any confusion over the make, model, or condition of your item.

File Claims Quickly

The clock starts ticking on your claim as soon as an eligible item is damaged, stolen, or lost. So file your claim as promptly as possible. 

Get your purchase protection claims in fast because the coverage usually has a strict timeline and you don’t want to be caught outside the window.

Also, file your claims online. In addition to creating a digital record of your claim, submitting claims online allows companies to receive them immediately. 

Credit cards allow us to buy things now and pay for them later. Prepaid and debit cards allow us to make purchases more conveniently in-store and online. And when you choose a card that has purchase protection, you’re also buying peace of mind.

When you want a little extra insurance for your important purchases, consider a card that provides purchase protection.