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Credit Card Feature: Purchase Protection

Information verified correct on December 10th, 2016

You can enjoy peace of mind when shopping with your credit card with purchase protection, just make sure you read the terms and conditions to avoid disappointment.

The vast majority of gold and platinum credit cards offer purchase protection as a complimentary perk. You may also be able to purchase this feature on standard credit cards. Purchase protection is one of those features, along with free travel insurance and extended warranties, that has come about as a result of the competition between credit card companies in Australia.

Comparison of Credit Cards with Purchase Protection

Rates last updated December 10th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
St.George Vertigo Platinum
A platinum card with a balance transfer offer of 0% p.a. for 18 months and an introductory purchase offer of 1% p.a. for 12 months with an annual fee waiver for the first year.
1% p.a. for 12 months (reverts to 12.74% p.a.) 0% p.a. for 18 months $99 p.a. Go to site More info
American Express Essential Credit Card
Receive a $50 credit on eligible spend and get Smartphone screen insurance combined with a no annual fee for life card. Also enjoy a 0% p.a. balance transfer rate for 12 months.
14.99% p.a. 0% p.a. for 12 months with 1% balance transfer fee $0 p.a. Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
American Express Qantas Discovery Card
Bonus points and purchase protection repairs or replaces eligible items if they are accidentally broken or stolen within 90 days of purchase.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $0 p.a. Go to site More info
HSBC Platinum Credit Card
The HSBC Platinum Credit Card offers purchase protection cover for eligible purchases.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
American Express Velocity Escape Card
Enjoy 7,500 bonus Velocity Points when you meet the minimum spend requirement and earn up to 2 points for every $1 you spend, together with a $0 annual fee.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $0 p.a. Go to site More info
American Express Platinum Edge Credit Card
Receive 10,000 Membership Rewards Bonus Points when you meet the minimum spend requirement. Enjoy a $200 travel credit every year and get 0% p.a. for 12 months on balance transfers.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $195 p.a. Go to site More info
ANZ Frequent Flyer Platinum
Get 50,000 bonus Qantas Points when you apply online, are approved and spend $2,500 on eligible purchases within the first 3 months. Enjoy a waived annual fee for the first year and earn up to 1.5 Qantas Points per dollar spent.
19.99% p.a. $0 p.a. annual fee for the first year ($295 p.a. thereafter) Go to site More info
HSBC Platinum Qantas Credit Card
Receive 60,000 bonus Qantas Points on eligible spend within 3 months. Enjoy access to premium benefits and complimentary insurance.
19.99% p.a. $199 p.a. Go to site More info
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
Citi Rewards Credit Card - Platinum Card
Enjoy a reduced annual fee on the first year, 0% p.a. for 24 months balance transfer offer, Citi Reward Points on eligible spend, plus a complimentary travel insurance.
20.99% p.a. 0% p.a. for 24 months with 1.5% balance transfer fee $199 p.a. annual fee for the first year ($249 p.a. thereafter) Go to site More info
ANZ First Visa Credit Card
Enjoy 0% p.a. balance transfer rate for the first 18 months, a low annual fee, interest-free days on purchases and a low minimum credit limit.
19.74% p.a. 0% p.a. for 18 months with 3% balance transfer fee $30 p.a. Go to site More info
Citi Rewards Credit Card - Classic Card
Earn points for every dollar spent on all eligible purchases and enjoy 0% p.a. on balance transfers for 12 months.
20.99% p.a. 0% p.a. for 12 months $99 p.a. Go to site More info
ANZ Platinum Credit Card - Exclusive Offer
Receive a low introductory offer of 0% p.a. on purchases for 3 months and 0% p.a. on balance transfers for 12 months. Also, enjoy an annual fee waiver in the first year.
0% p.a. for 3 months (reverts to 19.74% p.a.) 0% p.a. for 12 months $0 p.a. annual fee for the first year ($87 p.a. thereafter) Go to site More info
Bank of Melbourne Vertigo Platinum
A platinum card with a low balance transfer offer of 0% p.a. interest for 18 months and 1% p.a. for 12 months on purchases combined with complimentary insurance covers.
1% p.a. for 12 months (reverts to 12.74% p.a.) 0% p.a. for 18 months $99 p.a. Go to site More info
NAB Low Fee Card
Enjoy a low introductory rate of 0% p.a. on balance transfers and purchases for 15 months.
0% p.a. for 15 months (reverts to 19.74% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $30 p.a. Go to site More info
Citi Clear Platinum Card
A low rate platinum credit card with a low interest rate on purchases and balance transfers.
0% p.a. for 9 months (reverts to 14.99% p.a.) 0% p.a. for 9 months $99 p.a. Go to site More info
Citi Rewards Credit Card - Signature
Complimentary international travel insurance, transit accident insurance, interstate flight inconvenience insurance, purchase cover insurance and extended warranty insurance.
20.99% p.a. 0% p.a. for 6 months $199 p.a. annual fee for the first year ($395 p.a. thereafter) Go to site More info
Emirates Citi World MasterCard
Receive protection through guaranteed pricing scheme, purchase cover insurance, and extended warranty insurance.
20.99% p.a. 0% p.a. for 9 months $149 p.a. annual fee for the first year ($299 p.a. thereafter) Go to site More info
American Express Qantas Premium Card
Earn as much as 30,000 bonus Qantas Points when you meet the minimum spend requirement. Enjoy frequent flyer benefits including uncapped Qantas Points per $1 spent, complimentary travel insurance and Qantas Club lounge invitations.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $249 p.a. Go to site More info
American Express Platinum Business Card
Receive 100,000 bonus points when you meet the minimum spend requirement and earn up to 2 Membership Rewards points for every dollar spent.
$1,500 p.a. Go to site More info
ANZ First Student Card
An ideal credit card for students with 44 days interest-free on purchases with $0 annual fee in the first year. Access your account on the go with the goMoney™ app.
19.74% p.a. $0 p.a. annual fee for the first year ($30 p.a. thereafter) Go to site More info
ANZ Low Rate Platinum Credit Card
$250 Back plus 0% p.a. for the first 6 months on purchases from approval.
0% p.a. for 6 months (reverts to 13.49% p.a.) $99 p.a. Go to site More info
BankSA Vertigo Platinum
Enjoy 0% balance transfer rate for 18 months and 1% purchase rate for 12 months if you apply and are approved by 4 January 2017.
1% p.a. for 12 months (reverts to 12.74% p.a.) 0% p.a. for 18 months $99 p.a. Go to site More info
American Express Velocity Platinum Card
Enjoy up to 50,000 bonus Velocity Points when you meet the minimum required spend and earn up to 3 rewards points per dollar spent. Also receive a complimentary return flight every year.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $349 p.a. Go to site More info
American Express Qantas Ultimate Card
Enjoy up to 100,000 bonus Qantas Points on eligible spend, earn up to 3 Qantas Points for every $1 spent and get a free domestic return flight every year.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $450 p.a. Go to site More info
Virgin Australia Velocity Flyer Card - 0% Interest Offer
Receive 0% p.a. for 12 months on purchases, 0% p.a. for 6 months balance transfers and an exclusive $129 Virgin Australia Gift Voucher every year.
0% p.a. for 12 months (reverts to 20.74% p.a.) 0% p.a. for 6 months $129 p.a. Go to site More info
Virgin Australia Velocity High Flyer Card - 30k Bonus Points offer
Receive 30,000 bonus Velocity Points and earn 1 Velocity Points per $1 spent. Receive an exclusive $129 Virgin Australia Gift Voucher and two complimentary Single Entry Virgin Australia domestic Lounge passes each year.
20.74% p.a. 1.9% p.a. for 15 months $144 p.a. annual fee for the first year ($289 p.a. thereafter) Go to site More info
NAB Premium Card
Benefit from Premium credit card advantages including travel insurance, higher credit limits and VIP Lost Card Cover. 0% p.a. for 15 months on purchases and balance transfers.
0% p.a. for 15 months (reverts to 19.74% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $90 p.a. Go to site More info
Citi Simplicity Card
Take advantage of the 0% p.a. for 9 months offer on balance transfers, a low interest rate on purchases, an annual fee waiver for life, plus 5% cashback on retail purchases.
19.99% p.a. 0% p.a. for 9 months $0 p.a. Go to site More info
ANZ Rewards Travel Adventures card
Pay no overseas transaction fee on purchases and receive complimentary domestic return flight and lounge passes each year you hold the card when you spend $500 on eligible purchases within the first three months.
20.24% p.a. $225 p.a. Go to site More info
American Express Platinum Card
Receive 100,000 Membership Rewards Bonus Points when you meet the minimum spend requirement and earn up to 3 points per dollar spent. Gain access to travel insurance, $300 Platinum Travel Credit every year and access to 900 VIP airport lounges.
$1,200 p.a. Go to site More info
Citi Rewards Platinum Card - Cashback Offer
Earn $250 cashback on eligible spend, plus enjoy 0% p.a. balance transfer offer for 12 months, discounted annual fees for the life of the card and a complimentary travel insurance.
20.99% p.a. 0% p.a. for 12 months $99 p.a. annual fee for the first year ($199 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
NAB Qantas Rewards Premium Card - Exclusive Offer
Get 75,000 bonus Qantas Points plus enjoy a low promotional offer of 4.99% p.a. for 6 months on balance transfers.
19.99% p.a. 4.99% p.a. for 6 months $250 p.a. Go to site More info

Purchase protection

What is purchase protection?

When you buy goods on your credit card, you may be eligible for purchase protection insurance. Usually this insurance is available for up to three months against loss, theft or accidental damage in certain situations for items purchased with an eligible credit card.

What are the types of purchase protection?

Generally, there is only one type of purchase protection with your credit card, but there are different terms and conditions that state when a purchase will qualify for cover and when the benefits will be provided. It is important to read the fine print for important information about the cover, including the exclusions and the requirements for each claim. Some claims may require an excess as well.

Although the terms and conditions of purchase protection will differ from one credit card provider to another, it usually covers against theft, loss or accidental damage that occurs within 90 days or three months of the purchase date - check the terms and conditions to see which one applies to you. Purchase protection may provide a replacement or a refund of the purchase price. There may also be an eligibility criteria that apply, such as the minimum price paid for the item, so it is always a good idea to check the terms and conditions to see exactly what protection is afforded.

How does purchase protection work?

When making a purchase with your eligible credit card, you should always keep the receipt as you will need this to make your claim. The insurer may also need you to provide other documents to support your claim.

It’s also important to know that your credit card provider isn’t the one who insures you, your credit card provider would have partnered up with an insurance company to provide you with cover. So if you intend to make a claim, you need to contact the insurer directly, not the credit card provider.

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How to compare purchase protection

  • Insurance policy. It should be automatically available if you’re a cardholder of the lender at no additional cost. It lasts for ninety consecutive days or three months after your purchase.
  • Privacy. Your information should only be disclosed in order to monitor your claims and prevent fraud.
  • Complaints and disputes. If you have a complaint about your insurance product, it is recommended that you go to your lender in person. This process should be relatively simple.
  • The effort put into your claim. When making a claim, it is expected that you give your lender all the help that is required. Make sure that the instructions and documentation required is reasonable.
  • Fraudulent claims. When making a claim you have the responsibility to be honest. If any claim is fraudulent you may no longer be eligible for purchase protection.

Pros and cons of purchase protection

Pros

  • Peace of mind. Be covered for up to three months against loss, theft or accidental damage to goods purchased on your credit card (check the terms and conditions to be sure exactly which items are covered).
  • Complimentary with your credit card. Protection purchase is usually a complimentary service with high annual fee and reward credit cards, so it may be worthwhile to take advantage of the service just because it’s there.

Cons

  • There may also be a limit on how much the insurance will pay out. Some credit cards even offer refund protection, meaning that the purchase price will be refunded by the card provider should a merchant refuse a refund on an eligible item. Because many people do not particularly bother to read the fine print of their credit card contracts, nor even the smaller print easily viewable on the web page, it may not even be apparent to them that their card offers purchase protection.

Things to avoid about purchase protection

  • If you have any doubts about purchase protection, don’t hesitate to call the credit card provider and ask a representative directly. If such a feature appeals to you and you can envisage a situation where you would make use of it, then it is advised that you check what is and is not covered. Do make sure you ask to be referred to the specific page in the terms and conditions so you can verify what you are being told. It is quite common that a credit card adviser can offer advice that they’re not 100% sure about themselves.
  • While purchase protection is not is not perfect and does not offer total protection in every situation, remember that it is only a perk and should not be the reason for having a credit card.
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Frequently Asked Questions about purchase protection

Do Visa credit cards have purchase protection?

Some credit cards in the Visa card range will offer purchase protection. Again, please check our credit card reviews to see whether this service is included.

Is there such thing as credit card with free purchase protection?

Purchase protection is generally a complimentary service associated with high annual fee and rewards credit cards. Since you’re paying such a high annual fee for the credit card, you’re rewarded with extra perks such a purchase protection.

How does it take for credit cards to have purchase protection?

Usually the service is instantly included into your credit card. When you need to make a claim, you then contact the insurer, not the credit card provider. The amount of time it takes for your reimbursement depends on the insurer and case by case basis - it may be a good idea to check the terms and conditions for an indication.

If you make purchases online or over the phone with your credit card it is worth comparing platinum or gold credit cards that offer purchase insurance. If you often buy high ticket price items you may want to consider comparing the range of Black Credit Cards.

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4 Responses to Credit Card Feature: Purchase Protection

  1. Default Gravatar
    Leonie | October 25, 2016

    I live in Sydney, Australia. I purchased Japanese hotel accommodation via an online travel company last April. Our holiday had now begun but when I arrived at the hotel today I was told that the company had gone broke and had not paid the hotel and therefore my money was gone. Travel insurance told me that they would not pay am now wondering if I have any protection from visa as I paid on Visa platinum card. Accommodation cost about $1000 which I can’t afford to lose!!

    • Staff
      May | October 28, 2016

      Hi Leonie,

      Thanks for getting in touch and I’m sorry to hear about your current situation.

      It would also be best if you get in touch with your card issuer so they may be able to help you resolve the problem. Though please note that the protection benefit for credit cards will depend on the type of card you have.

      Cheers,
      May

  2. Default Gravatar
    Joanne | September 8, 2015

    I paid for an item 8 months ago on my HSBC Platinum card but as yet it has not been supplied. Can my card’s purchase protection assist?

    • Staff
      Sally | September 9, 2015

      Hi Joanne,

      Thanks for your inquiry.

      There are a few factors that may affect your eligibility. As such, it’s ideal to check the terms and conditions or contact HSBC directly to confirm what you’re covered under.

      Please see page 50 of the terms and conditions PDF I’ve sent to your email together with HSBC’s contact number.

      I hope this helps.

      Thanks,

      Sally

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