What Is Credit Card Purchase Protection?

Name: What Is Credit Card Purchase Protection?
Item: What Is Credit Card Purchase Protection?
Author: Doug Milnes, CFA

Some credit card companies offer purchase protection within a limited timeframe on items accidentally damaged or stolen.

By Doug Milnes, CFA

Edited by Erika Hearthway

Updated: October 27, 2024

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What Is Credit Card Purchase Protection?

Credit card purchase protection, also referred to as damage protection, will protect credit card purchases that were accidentally damaged or stolen within a certain timeframe. In fact, many people choose to use their credit card versus a debit card because issuer’s offer purchase, fraud and other types of consumer protection that banks typically don’t.

It’s important to remember that you’ll have a limited amount of time to file a claim and certain requirements must be met to receive compensation. These safeguards prevent consumers from attempting to scam credit card companies.

Purchase protection helps cover an accidentally damaged or stolen item purchased on your credit card.

There are a variety of claim limits and requirements. Your card issuer can educate you on what they offer and the process for filing claims.

Documentation is required when filing your claim. Specifically, credit card statements, itemized retailer receipts and a police report if your item was stolen.

Some credit card issuers also offer extended warranties, return protection, price protection and fraud protection.

Before you apply for a card, review its purchase protection policies to see what is covered, including fire, water damage and “unintentional events.”

How Does Purchase Protection Work?

Your credit card purchase is protected under your issuer if it was accidentally damaged or stolen within a certain period of time. You’ll need to provide required documents to your credit card issuer for your claim to be processed. The coverage may vary greatly between different issuers and cards, but generally, you can claim between $500 and $10,000 and the maximum limit is up to $50,000. This could be per calendar year, per cardholder or per account. It all depends on your credit card provider’s policies.

Purchase protection should not be confused with credit card fraud and identity theft protection, extended warranty protection or other kinds of protection that your issuer offers. This is a secondary type of insurance coverage, meaning that your homeowners, auto or renters insurance, for example, must be used first.

If they won’t cover it, then you can use purchase protection as a backup. Make sure to keep your itemized credit card receipts and statements to reap the full benefits of this protection.

Understanding Limits and Requirements

Your limits and requirements are going to depend on what your credit card issuer requires in order to file a claim. For example, there are rules surrounding:

The amount that is protected
The timeframe for when you can file
How much you can file in any given time
The documents you need to provide

You will need to thoroughly review your credit card’s policies by looking at your agreement with them or you could always reach out to a customer service representative for help. The following are some things to watch for when trying to understand limits and requirements.

Limits will vary.

Generally, the limits are going to range from $500–$10,000 per claim, depending on your agreement. The better the card (i.e. a premium card), the higher the limit will likely be.

The three major credit card issuers offer them.

American Express, Mastercard and Visa all have purchase protection in place for their consumers. They issue a number of different credit cards on the market.

The time frame is generally from 90–120 days.

You will have three to four months after the damage or theft occurs to file a claim. After that, you won’t be able to.

The limits apply to different circumstances.

Sometimes, the limit applies to the cardholder, while other times it may apply to the calendar year or the account if you have more than one card with this issuer.

Reimbursement happens quickly.

Around 15–30 days after you file your claim, you should receive reimbursement if your claim is successful.

The Difference Between Purchase Protection and Other Coverages

Credit card purchase protection differs between other types of protection. Some of those include the limits, the timeframe and other aspects of making purchases. Your situation may not be eligible for purchase protection, but you might be able to file a claim for another kind of protection instead.

Benefits	Description Title
Price Protection	With price protection, if you purchase an item and then find it advertised at a lower cost later on, you can show that to the card issuer, file a claim and receive the difference in the price as reimbursement.
Return Protection	If you purchase something with a short return window or no return policy at all, you can take advantage of return protection through your card issuer, which will extend the return time and get you your money back.
Extended Warranty	You may have purchased something with a warranty, but that warranty expired. If an item has become damaged, then you can get an extended warranty through your credit card issuer.
Fraud Protection	If someone steals your card and makes unauthorized purchases, then fraud protection could cover you and you won’t have to pay any of it back to your credit card company.

An illustration of a man reviewing each credit card to determine if they offer purchase protection options.

Which Credit Cards Offer Purchase Protection?

Many credit cards offer purchase protection as a benefit. When you apply for a card, you can review the agreement and/or reach out to the card issuer to find out more. The coverage for each card can vary, and some credit cards might not offer this benefit at all. Unlike fraud protection — which is pretty universal — only some cards will provide a purchase protection policy, also known as a damage protection policy.

Some benefits may be determined based on the card level you’re approved for — a premium rewards card may have higher limits. For instance, The American Express® Gold Card offers a maximum coverage of $10,000 per item or $50,000 per card per calendar year. The Blue Cash Everyday Card from American Express, which is not as premium, offers $1,000 per item or $500 per event for natural disasters.

Comparing Major Networks’ Purchase Protection

The major networks — Mastercard, Visa and American Express — provide different types of coverage. Learn how long coverage lasts, the reimbursement timeline and more before applying for a card with these issuers.

Factors to Consider	Mastercard	Visa	American Express
Credit cards covered by purchase protection	It depends on what the financial institution offers for Mastercard. It is called Purchase Assurance and you can learn more by reading their policies.	Visa Infinite and Signature cards provide protection. Theft and damage are covered under their policy.	Eligible American Express cards are covered. This includes most of them. Check your policy.
How long does coverage last?	Coverage lasts for up to 90 days from the date of purchase, typically, but some cards go up to 120 days.	Coverage lasts for up to 90 days from the date of purchase, typically, but some cards go up to 120 days.	Coverage lasts for up to 90 days from the date of purchase.
Maximum payout per claim	The maximum payout is up to $1,000 per loss and a total of $25,000 per cardholder account per 12-month period.	Visa will reimburse or repair for up to $10,000 per claim or $50,000 per year.	The maximum payment limit is $10,000 depending on which type of American Express card you have, but it may only be $1,000. There is a limit of $50,000 per year.
How long is the reimbursement timeline	You will need to look at your cardholder agreement.	You will receive a repair or reimbursement up to 15 days after your claim has been approved.	You should receive money back within 30 days of your claim being approved.
Primary or secondary coverage?	This coverage is secondary.	This coverage is secondary.	This coverage is secondary.
What types of events are protected?	Theft and damage to the goods	Theft and damage to the goods	Theft and damage to the goods, as well as loss

An illustration of a man reviewing what purchase protection covers and what it does not cover.

What Does Purchase Protection Cover and Not Cover?

Purchase protection typically covers damage and theft as well as loss in some instances. If your card gets stolen, you’d turn to fraud protection. There are also return and extended warranty protection policies available from some cards. You’ll need to adhere to the terms and conditions of your card issuer and use your other types of insurance first in order to potentially qualify.

Major Networks	Protection Inclusions	Protection Exclusions
Mastercard	Damage Theft	Lost items Computer software Perishable items Pre-owned goods
Visa	Damage Theft	Lost items Pre-owned items Used items Computer software Items that a common carrier like USPS controls (along with other delivery businesses)
American Express	Damage Theft Loss	Computer software Downloaded services Dental services Medical services Goods for commercial or professional usage

An illustration of a man filing a purchase protection claim.

How Do I File a Purchase Protection Claim?

You will need to take certain steps to receive the benefits of your purchase protection. They include filing a claim with the required documents, such as your credit card statement, itemized receipt and your police report (if it involves theft). You will need to file a claim through your primary insurance, such as your auto insurance or homeowners insurance, first, so keep that in mind.

In general, the process is the same, but there could be some differences when it comes to the specifics. You will need to check your cardholder agreement to find out the information specific to your card. And if you hit the maximum limit, you won’t be able to file a claim.

1
Go through your primary insurance.
This may be your homeowners or car insurance policy. If this avenue does not work, then you can turn to your credit card for help.
2
Read your cardholder agreement.
Review your agreement and call your credit card issuer if you need more clarification. They will let you know exactly what to do to file a claim for purchase protection.
3
Gather the required documents.
This may include your credit card statement, itemized receipt, insurance claim and police record, if a theft occurred. You’ll need to turn in these documents with your claim form.
4
Wait for an answer.
You can call up your credit card company if the reimbursement period has passed. Typically, it will take 15–30 days once your claim has been approved.
5
Protect yourself in the future.
Make sure you take the necessary steps to protect your purchased items. You may want to consider signing up for warranties and being more careful with your items if you accidentally damaged them.

DOCUMENTS YOU WILL TYPICALLY NEED TO FILE A CLAIM

There are required documents for filing your claim. Make sure you double-check your cardholder agreement to see what is required of you and reach out to your credit card company if you have any questions. Remember that if a theft occurs, you’ll need to file a police report right away in order to have the best chance of success with your claim.

Your credit card statement. You can generally find this online and/or in the mail. It’ll show your purchase on it.
An itemized receipt. This receipt should show the item you purchased and its cost so all purchasing details are clearly defined.
Your police report for theft. You will need to prove that someone stole from you and the only way to do this is by filing a police report.
A copy of the claim settlement you received from your primary insurance company. This would apply because of the secondary coverage rule.
Your insurance declaration page. If you can go through your other insurance for primary coverage, your card issuer may require this page.

Credit Card Purchase Protection FAQs

You may still have some questions about credit card purchase protection. By looking into the answers before you file your claim, you can save time and energy.

Which credit cards have purchase protection?

Visa, Mastercard and American Express cards typically offer purchase protection, though the limits will vary depending on what type of card you have. Premiere cards have higher limits, for example.

Do most credit cards have purchase protection?

Most major credit card networks are going to offer purchase protection, but they may call it something else, such as damage protection or purchase assurance. If you have a Visa, Mastercard or American Express, you likely have purchase protection.

How do I get purchase protection?

If you have a card with the major networks, you will probably have purchase protection. However, before signing up for a credit card, make sure you read the cardholder agreement to confirm this.

Do debit cards offer purchase protection?

Debit cards do not offer purchase protection. This is why for large purchases or other types of purchases, it’s worth it to use a credit card instead so you have more protection.

How to claim purchase protection on a credit card?

You can claim purchase protection on your card by looking at your cardholder agreement and following the right steps — including filing a claim and submitting documents — in order to have a successful claim.

Expert Insights on Credit Card Protection

MoneyGeek reached out to several financial experts for their insights on what credit card protection details and other ways to protect your credit account.

What Is Credit Card Purchase Protection?

What Is Credit Card Purchase Protection?

Credit Card Purchase Protection Overview

How Does Purchase Protection Work?

Understanding Limits and Requirements

The Difference Between Purchase Protection and Other Coverages

Which Credit Cards Offer Purchase Protection?

Comparing Major Networks’ Purchase Protection

What Does Purchase Protection Cover and Not Cover?

How Do I File a Purchase Protection Claim?

Go through your primary insurance.

Read your cardholder agreement.

Gather the required documents.

Wait for an answer.

Protect yourself in the future.

Credit Card Purchase Protection FAQs

Which credit cards have purchase protection?

Do most credit cards have purchase protection?

How do I get purchase protection?

Do debit cards offer purchase protection?

How to claim purchase protection on a credit card?

Expert Insights on Credit Card Protection

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