Purchase security can give you peace of mind knowing that your eligible items will have a longer guarantee.
Extended Warranty Insurance on your debit card extends the warranty for an eligible product for the same amount as the manufacturer’s express warranty for up to one year, provided the original warranty is not greater than five years.
Most terms and conditions will state that if the original warranty is more than six months, but less than 12 months, the original warranty is doubled. Generally, the extended warranty period starts from the date the manufacturer’s warranty expires and finishes 12 months after it’s commenced.
How does a debit card with purchase security work?
If you’ve bought your eligible item with your debit card, then you could have the warranty extended. To be eligible for this cover, most terms and conditions will state that you must have paid for the product in full and when using your eligible debit card and you need to have made the purchase by using the physical card or by providing the debit card number. Purchases using the linked account without the actual use of the debit card, such as direct debit or BPay payments will not be covered by extended warranty. Generally, the items will need to have the manufacturer's unique product identification serial number and will not be extended to any other person.
The period will depend on how long the manufacturer’s warranty was when you bought the item. Please refer to the table below for examples.
|Manufacturer's Warranty||Extended Warranty|
|7 days||7 days|
|14 days||14 days|
|1 month||1 month|
|6 months||6 months|
|1 - 5 years||1 year|
|Over 5 years||No cover|
What are the pros and cons?
- Protection. Enjoy peace of mind when making your eligible purchases with your debit card and your warranty is extended. This means that your items will be protected and guaranteed for longer.
- Using your own money. Extended warranty insurance is normally associated with credit cards with the risk of falling into debt, but now you can enjoy the same level of cover with a debit card, which means you’re using your own money.
- Rewards. While debit cards are not usually linked with a rewards program, there is one rewards transaction account offered by Bankwest that does. This means that you can offset part of your spending be redeeming your points for rewards.
- Maximum amount. Your credit card insurance provider is likely to pay under this insurance plan for a maximum amount per year. Normally, you won’t be able to receive more than the purchase price of the eligible item recorded on your bank statement. There is also a maximum amount to the purchase price of the item you want covered.
- Exclusions. If the covered item is pair or a set, then you will only be reimbursed for the portion of the purchase price paid in respect of that part despite any special value that the item has.
Things to avoid about debit cards with extended warranty insurance
- Ignoring the terms and conditions. At your insurer’s only option, they can choose to repair, rebuild or replace the eligible product with another item of similar quality. They can also pay cash for the eligible product that doesn’t exceed the original purchase price.
Frequently asked questions
- How do I make a claim? As the cardholder you’re expected to give as much assistance as possible to your insurer to help reimburse you. You will need to supply all the documents required to enable the insurer to provide your cover.
- Where can I find more information about credit card and extended warranty? Please see this guide about credit cards and extended warranty.
- Where can I find the best debit cards? Please see this page for our comparison of debit cards.