Compare credit cards with price protection

If you’re in the market for a credit card, you may be familiar with some of the more well-known features like interest-free days and bonus reward points. You may not know about a lesser-known perk called price protection.

Credit cards that offer a price protection guarantee to protect the cardholder from overpaying or getting ripped off. For example – you purchase a product in-store and pay $1,000 for it. A few days later, you notice another store selling the same item for a lower price than you originally paid. If you’ve got a credit card with price protection guarantee, you would theoretically be able to claim the difference between what you paid and the lower price.

Before you start backtracking through your credit card statement, here’s what you need to know about credit cards with price protection guarantee.

Price protection, also known as purchase protection, is a handy type of insurance that can help to prevent cardholders from being ripped off on items bought with their credit cards. 

If, for example, you purchased a new appliance for $500, but then saw it was being sold at other retailers for $350, price protection allows cardholders to contact their card issuer and claim the price difference. Not all credit cards come with this feature, so factor this into your comparison when choosing a new credit card. 

Not every credit card comes with price protection insurance. This type of feature may typically be reserved for more premium credit cards as well as rewards credit cards. However, some basic low-rate credit cards may still offer this feature. This is why credit card comparison can be invaluable in your card search, as it can help you to narrow down your options and filter out any cards that don’t offer this perk. 

It’s important to keep in mind that each credit card issuer will have different eligibility criteria around its price protection insurance, so it’s important to stay on top of any rules before trying to make a claim. Cards that offer price protection also typically come with higher annual fees and ongoing costs. 

Generally speaking, a credit card price guarantee is a bonus feature offered by credit card companies to give cardholders peace of mind. Depending on the type of card you choose, the price protection guarantee may be included as part of the card’s features, or it may be available at an extra charge.

The conditions and amount you can claim vary depending on the card, but as a general rule of thumb, a price protection guarantee is usually valid for up to three months for products that have been bought using the card in Australia. Regardless of how often you use your credit card, knowing how to use a credit card with a price protection guarantee can save you from getting ripped off or overpaying.

The terms and conditions of credit cards offering a price protection guarantee vary greatly between cards, so it’s important to do your research and compare your options.

When you’re comparing price protection guarantee, look out for what items are covered as there are usually limits on what you can and can’t claim. For example, a camera or smartphone may be covered, but a car or motorbike may not. Generally speaking, perishable and consumable items aren’t eligible. If you’re a frequent flyer and use your card overseas, check that the price protection guarantee covers international purchases.

In addition to offering a price protection guarantee, some credit cards also offer insurance cover against theft, accidental damage or loss for a period of time. Policies and conditions vary between cards, so check the credit card product disclosure statement, so you know where you stand.

There may also be limits to the amount you can claim – some cards have a dollar limit per claim while other may have an annual threshold.

The claims process is different for each card, so find out what happens if you do need to make a claim. There are things to look for, such as whether you need to claim in a specific timeframe, what supporting documentation you need to claim and how long it takes for the claim to be processed.

Price protection guarantees are a feature of credit cards. While it can be a beneficial feature, there are other factors to consider when comparing credit cards. It always pays to look at the bigger picture and factor in card fees, interest rates, rewards programs and other incentives like interest-free days.