We all like to get a good bargain, right? But no matter how much you comparison shop and track prices, chances are you’ve had the experience of coming across the exact same item you’ve just purchased for less money than you paid.
Luckily, some credit cards offer a benefit called price protection. Don’t get it confused with purchase protection, which is something completely different. Whereas purchase protection usually covers you in the case of damage, theft or sometimes even the loss of an item, price protection is an insurance policy against a price drop on an item you buy.
To put it generally, if you use an eligible card to purchase an item and then find that same item on sale for less, your card will reimburse you for the difference between what you paid and the better price you found.
How price protection benefits differ
Not all cards offer price protection, and among the cards that do, the coverage tends to vary from card to card.
Among the factors you should consider when using a card with price protection are:
1. The amount of coverage per item. This benefit is usually offered with a maximum of $200 to $500 per item.
2. The amount of coverage per year. Just like there are individual claim maximums, each cardholder can usually only make claims up to a specific dollar cap each year (usually $1,000-$2,500). Sometimes, there’s also a cap on the number of claims you can make in a 12-month period.
3. The window of time in which you can find a lower price. You can’t make claims indefinitely, otherwise we’d all be claiming credit for possessions that have merely deteriorated. Credit cards impose fairly strict time limits, usually 30-120 days after making your purchase. Sometimes you’ll need to start your claim within a particular amount of time after seeing the lower price.
4. Any exclusions. While many purchases are covered, policies do tend to exclude some items including perishables, jewelry and services.
5. Taxes and shipping don’t count. Just remember not to factor these into the cost difference if you submit a claim.
6. Identical items. Many of these policies limit the number of identical items you can include in a claim.
7. It’s not automatic. You generally need to track your own purchases and submit claims when a lower price is found. There are services that will track and submit claims for you — but these services are likely why many issuers have decreased or discontinued price protection on their cards.
8. Purchases must usually be made in the U.S. Almost all cards that offer a price protection benefit restrict eligibility to items purchased within the U.S.
How to use price protection
You’ll usually need your itemized sales receipt, your credit card statement showing the charge and an original printed advertisement showing the sale date or advertisement date, as well as the lower price. You may also need other documents or particular supporting information, so check out your card’s guide to benefits or call the number on the back of your card for specific instructions.
Credit cards that offer price protection
The number of credit cards that offer price protection has decreased drastically in the last few years. First, Discover removed price protection from all of its cards. Then, Chase removed price protection from most of its cards, followed by Citi, USAA, select Barclays cards and cobranded IHG cards. Mastercard has removed price protection as of July 1, 2019.
With some issuers, like Capital One, the level of travel and shopping protections you get with your card (if you get any at all) depends on the card type.
Here are some categories of cards that still offer a price protection benefit:
Select United cobranded cards
Four United cobranded credit cards offer price protection, even though this protection was removed from other United co-branded cards and most other Chase cards:
- United TravelBank Card (no annual fee)
- United Explorer Business Card ($95 annual fee)
- United Club Card ($450 annual fee)
- United Club Business Card ($450 annual fee)
The information for the United TravelBank and United Club Business cards has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
The coverage on all of these cards will reimburse the difference — up to $500 — when a card purchase you made is advertised for less in print or online within 90 days. You’re capped at $2,500 per year in reimbursements.
Capital One business cards
Capital One offers four cards that may offer price protection depending on the card type you are issued:
- Capital One® Spark® Cash for Business
- Capital One® Spark® Miles for Business
- Capital One® Spark® Cash Select for Business
- Capital One® Spark® Miles Select for Business
If your Spark card is a Visa Business Signature card (see guide to benefits), World Elite Mastercard for Business Spark Pro (see guide to benefits) or World Elite Mastercard for Business Spark Pro (see guide to benefits), you may have protection. If you do, when you purchase an eligible item with your card and see it available for less in another retail store’s printed advertisement within 60 days of the date of purchase, you can be refunded the difference. Coverage is up to $500 per item and up to $2,500 a year per eligible account. However, advertisements posted on the Internet are specifically excluded.
Other cards
There are a few other one-off cards that advertise price protection as a benefit. These cards include:
- Wells Fargo Visa Signature® Card
- U.S. Bank® Cash 365
American Express® Card - HSBC Premier World Elite Mastercard® credit card
- Navy Federal More Rewards American Express® Credit Card
Some other cards may offer price protection, but don’t publicly advertise the benefit. There may also be regional banks or credit unions in your area that offer cards with price protection.
The information for the Wells Fargo Visa Signature Card, the U.S. Bank Cash 365 American Express Card, the HSBC Premier World Elite Mastercard credit card and the Navy Federal More Rewards American Express® Credit Card have been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Bottom line
Credit card price protection can literally save you thousands of dollars per year depending on your purchases and coverage. Although most cards limit how much you can be reimbursed annually, you can decrease the likelihood of reaching the limit by spreading your spending across multiple cards that offer price protection.
Knowing the specific benefits of each of your credit cards and then leveraging them to make the most of your purchases can be a great way to save money on everyday goods and larger items alike. For some purchases, you’ll also want to make sure your card offers other shopping protections like extended warranty protection, purchase protection and return protection.
Featured photo by mixetto/Getty Images.
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