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Many of us enter the world of rewards credit cards thinking of little more than earning the points and miles that will get us to our next destination. However, rewards cards typically include non-travel-related benefits as well. While they aren't as flashy as a free flight, these unsexy perks can still yield thousands of dollars in value over your credit card's lifetime.
Among the most valuable of these benefits is purchase protection. This perk can be handy if you've got a new purchase that breaks, stops working, or gets stolen shortly after purchase. However, purchase protection policies vary between credit card networks and card issuers. Thus, it's vital that you understand the coverage provided by your card before you need to make a significant purchase or claim.
Let's look at how purchase protection works and the best credit cards for this benefit.
Page Contents
What Is Credit Card Purchase Protection?
Purchase protection covers you against damage to — or theft of — items you’ve purchased using a credit card that offers this benefit. If you make a purchase using your card and that item is stolen, broken, or damaged, you can make a claim with your card issuer. The benefits provider will cover the cost of repairing or replacing the item or reimburse you for the purchase price.
However, the terms and conditions for purchase protection are important. Certain types of purchases aren't covered. Plus there are issuer-specific rules — such as how quickly you need to make a claim or documents you must provide — that are important to understand.
How does credit card purchase protection work?
Purchase protection coverage typically lasts between three and four months from the purchase date. Credit cards on the lower end limit claims to $500 per incident. However, the claim maximum can go as high as $10,000 on cards with the best policies. Most cards also include an annual limit of $50,000 across all approved claims on your account.
It's worth noting that gifts purchased with your card and then given to someone else are still covered by most policies based on the card used to pay for the item. Eligibility isn't based on the cardholder keeping the item, so long it's not something you purchased for resale.
Credit Cards Offering Purchase Protection Policies
Mastercard and Visa both offer purchase protection policies. However, it's up to individual card issuers to decide how the plan is implemented and the level of coverage. Meanwhile, American Express generally offers purchase protection on most of its cards.
| Issuing Bank | Cards Offering Purchase Protection | Maximum Claim Value | Claim Window | Example of Policy |
|---|---|---|---|---|
| American Express | Amex provides purchase protection across 58 credit and charge cards. You can find links to each card's policy in the linked page on Amex's website. Many of Amex's premium cards also include lost items in this policy, while those with lower annual fees don't cover lost items. | Between $1,000 and $10,000 per covered incident, depending on the card held. All cards cover up to $50,000 in claims per year. | 90 days | American Express Purchase Protection Policies |
| Bank of America | Purchase protection applies to a small set of the bank's Visa cards, including small business card, marketed as Purchase Security. | $10,000 per item and $50,000 per year. | 60 days | |
| Barclays | Most Barclays personal and co-branded cards provide the same purchase protection policy (marketed as Purchase Assurance); see your guide to benefits for more details | A maximum of $1,000 per loss and a total of $50,000 per 12-month period. | 90 days | Arrival Plus Guide to Benefits |
| Capital One | Capital One's purchase protection is marketed as Purchase Security; it only covers Visa Signature and Visa Signature Business cards. | A maximum of $500 per claim and $50,000 per cardholder. | 90 days | Capital One Guide to Benefits |
| Chase | Purchase protection policies differ between cards; check your card's benefits guide linked in our AwardWallet master list. | Between $500 and $10,000 per covered incident, depending on the card held; all cards cover up to $50,000 in claims per year. | 120 days | AwardWallet Masterlist of Guides to Benefits |
| Citi | Few Citi cards still offer this benefit, but it remains available on the Citi Strata Premier℠ Card and Costco Anywhere Visa® Card by Citi | Up to $10,000 per item and up to $50,000 per year. | 90 days | Citi Strata Premier benefits guide as an example |
| U.S. Bank | Covers U.S. Bank-issued Visa Signature® cards. | A maximum of $500 per claim and $50,000 per cardholder | 90 days | U.S. Bank Visa Signature Purchase Security |
| Wells Fargo | Not all Wells Fargo cards offer purchase protection policies, and coverage differs between cards. Check your card's Guide to Benefits linked in our AwardWallet master list | Between $500 and $1,000 per covered incident, depending on the card held, and up to $50,000 in claims per year. Not all Wells Fargo credit cards provide Purchase Protection. | 90 days | Master list of Guides to Benefits |
Note that Discover cut purchase protection back in 2018, along with other ancillary benefits, and American Express reduced the purchase protection period in 2020.
What Purchases Are Excluded From Purchase Protection?
The list of exclusions differs for each provider, though it's relatively consistent across different cards from the same issuer. Common exclusions include:
- Animals, plants, perishables, and consumables
- Antiques and collectible items
- Boats, cars, aircraft, or other motorized vehicles (motorbike, truck, tractor, etc.)
- Computer software
- Items purchased for resale, professional, or commercial use
- Items under the care of a postal or delivery service
- Jewelry and watches
- Medical equipment
- Real estate
- Remote-controlled toys
- Rented or leased items
- Sports equipment
- Traveler’s checks, cash, tickets, gift cards, or other cash-like items
- Secondhand or refurbished items
Each provider issues a list of exclusions; you may even find a different list from two cards issued by the same bank. It’s essential to read the guide to benefits for your specific credit cards to determine which ones offer purchase protection, if any, and what items are covered. If you’re unfamiliar with your card benefits, we’ve compiled a handy list of guides to benefits from major credit providers.
Which Credit Card Issuer Has the Best Purchase Protection Policy?
Citi and Amex lead the way in the purchase protection category, providing coverage up to $10,000 per item/incident, up to a maximum of $50,000 per year on premium cards. Bank of America offers a similar policy, though, on a very small subset of its cards and with a much shorter claim filing window.
Premium coverage on cards like The Platinum Card® from American Express and Chase Sapphire Reserve®(Rates & Fees) offers up to $10,000 per incident — although you won't get more than the amount paid for the covered item, whichever amount is lower). And policies provide a fair coverage period. Amex and Capital One cover up to 90 days from purchase, for example, but Chase provides an impressive 120 days of coverage. On the other end, Bank of America requires starting your claim within just 60 days and returning all documents within 90 days.
At the low end, the Chase Sapphire Preferred® Card(Rates & Fees) provides a maximum of $500 per item. That's half of Amex’s lowest coverage and a small fraction of Citi’s highest reimbursement rate.
The American Express® Gold Card offers top value, providing $10K coverage with an annual fee of $325 (Rates & Fees). If you want to cover a business expense, the Ink Business Preferred® Credit Card(Rates & Fees) covers up to $10K per item, yet the card has an annual fee of just $95.
How To File a Purchase Protection Claim
Basic housekeeping rules are pretty standard when making a claim for every policy, no matter the card issuer. In all cases, you must keep both the credit card and shop receipts for the purchased item as proof of purchase, file a claim with the provider within the designated timeline, and present a police report if the claim is for a stolen item.
Additionally, most credit card purchase protection policies provide secondary coverage. That means they kick in after your other policies — such as renter's insurance, homeowner's insurance, or car insurance covering items stolen from your car. Thus, purchase protection on your credit card can cover any funds not reimbursed by these other policies or the deductible your other policies may include.
To begin filing a claim, call the relevant number below or visit the listed website:
- American Express: Go to americanexpress.com/onlineclaim or call 800-322-1277 to file a claim
- Bank of America: Visit visa.com/eclaims or call 800-VISA-911 to begin a claim.*
- Barclays: Visit MyCardBenefits.com or call 800-Mastercard to start a claim.
- Capital One: Call the Benefit Administrator at 800-553-4820*
- Chase: Go to eclaimsline.com or call 888-675-1461 for information or to file a claim.
- Citi: Visit cardbenefits.citi.com or call 866-918-4670 for instructions on submitting a Citi Purchase Protection claim.
- U.S. Bank: Call the Benefit Administrator at 800-553-4820*
- Wells Fargo: Visa cardholders can call the Benefit Administrator at 1-800-553-4820.* Amex cardholders call a separate Benefit Administrator at 866-918-4442
* Policies provided by Visa
You should also keep your broken or damaged items until the claim is finalized and you get a new item or reimbursement check. That way, if the claims administrator asks for more information or additional photos, you can provide those. You may even be asked to mail the item to verify its condition or to send it to an approved repair center.
Final Thoughts
Purchase protection is one of the least talked-about benefits of holding rewards-earning credit cards. But the ability to claim up to $10,000 per item could be worth more than the extra points you can gain swiping a different credit card with a less generous policy.
In all cases, you should read and understand the guide to benefits provided by your card before making any substantial purchase. You want to ensure you are covered for any damage or theft for the specific item you want to cover.
For rates and fees of the cards mentioned in this post, please visit the following links: Chase Sapphire Reserve® (Rates & Fees), Chase Sapphire Preferred® Card (Rates & Fees), American Express® Gold Card (Rates & Fees), and Ink Business Preferred® Credit Card (Rates & Fees)
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