What if your brand new phone or laptop got stolen or lost? While you may be feeling out of luck, your credit card can come to your rescue. One of the unseen benefits of a credit card is having purchase protection. This means if you used your credit card to buy that phone or laptop, it can actually prove to be helpful by reimbursing you for your lost, stolen or damaged items.
How does purchase protection work?
Purchase Protection safeguards your credit card purchases for up to a certain period. Typically the protection last for 90 days from the date of purchase. There’s also a limit on the extent of the coverage which will differ depending on the tier of your card. This means a platinum card’s purchase protection will be different from an infinite or signature credit card. That’s why make sure to check the limit of the coverage before applying for a credit card.
Also, keep in mind only specified instances may be covered and there are also item exclusions which may not be covered under your purchase protection. Item exclusions include animals, living plants, travelers cheques, consumable and perishable items among others.
Purchase Protection is not offered on all credit cards which means you will need to check with your provider whether this benefit is included in your card. While MasterCard offers purchase protection on Platinum and World cards, Visa offers this feature on its Platinum, Signature and Infinite credit cards. For American Express, this benefit forms part of all its cards. The following is a breakdown of the maximum amount of coverage offered for all these providers.
|Provider||Limit per occurrence (AED)||Aggregate limit (AED)|
What do I need to do?
The claim process typically involves notifying the card issuer, filling out a claim form and submitting the necessary documentation. You may also be asked to ship the damaged product to the provider, based on which your claim will reviewed and reimbursed, typically within 7-14 business days.
Now that you know about this beneficial feature of your credit card, you can save and protect your purchases but make sure your items are eligible to get these benefits. Remember to use your card for big purchases and make sure to save the original receipt.