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Purchase protection is a common complimentary credit card perk, especially when it comes to black, platinum and gold cards. Sometimes, you can also add this feature to standard credit cards for a fee. Inclusions will vary from card to card, but purchase protection usually offers insurance for up to three months when products bought with your card are lost, stolen or accidentally damaged.
Purchase protection provides you with extra value and greater peace of mind when paying with plastic. Unfortunately, many shoppers haven’t learned to tap into the full benefit of credit card purchase protection. This page explains what purchase protection is, how it works and how you can make claims under this insurance feature.
Purchase protection is a type of insurance that provides coverage on new items you buy using your credit card. While the terms and conditions vary between cards, purchase protection usually includes the following factors:
The claims process differs depending on your credit card provider and the underwriting insurance company, but generally involves the following steps:
Some credit cards may also provide the following complimentary insurance covers for your purchases:
When considering purchase protection insurance, here are some other factors you should keep in mind:
Compared to travel-specific perks like airport lounge access and complimentary travel insurance, purchase protection insurance is something that most people can enjoy on a day-to-day basis. When deciding if it’s something that you actually need, it’s important to consider the costs of the card and whether this feature will be worth it in the long term.
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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!!
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
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?
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