Retail Perks Offered by Your Credit Card Provider
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Ever buy a laptop only to spill coffee over its keyboard? Or maybe you purchased a flat-screen TV that suddenly stops working a week after its warranty expires. Maybe a scammer has stolen your credit card information and is ready to go on an online shopping spree.
Your credit card’s retail perks can help.
What are retail perks? They’re benefits that can help save money when shopping, protect you from fraudulent purchases, and provide free repairs or replacements when an item you’ve purchased is stolen or damaged.
These perks can be valuable if you use your credit card for most of your shopping. Not all cards provide retail perks, though. You’ll need to research the benefits of any card before applying. But finding a credit card that offers retail perks and doesn’t charge an annual fee is not unusual.
What are some of the most valuable retail credit card perks? And how can you use these perks to save money, time, and frustration? Here is a list of the most valuable.
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Purchase protection
Purchase protection reimburses you or replaces an item you purchased with your card that has been damaged or stolen. Say you buy a laptop with your credit card. Two weeks later, you drop it down the stairs and it no longer works. You call the retailer that sold you the computer but can't get a refund. You can then rely on your credit card provider for financial relief.
Here's how it generally works:
- Eligible purchases. To be eligible for purchase protection, you must use your credit card to make the purchase. Different credit cards may have varying criteria for eligible purchases, so it's essential to review the terms and conditions of your specific card.
- Coverage period. Purchase protection typically covers the purchased item for a certain period, often ranging from 90 days to 120 days from the date of purchase. The coverage period may vary depending on the credit card issuer and the type of item being protected.
- Covered events. Purchase protection generally covers events such as accidental damage, theft, or loss of the item. However, specific coverage details can differ between credit cards, so it's crucial to understand the terms and limitations of your card's purchase protection.
- Filing a claim. If you experience an eligible event, such as the item being stolen or accidentally damaged, you need to file a claim with your credit card issuer. The claims process typically involves providing documentation such as the original receipt, police report (in the case of theft), photos of the damaged item, and any other requested information.
- Reimbursement or replacement. If your claim is approved, the credit card issuer will reimburse you for the eligible amount, up to the maximum coverage limit specified by your card. In some cases, they may offer to repair or replace the item instead of providing reimbursement.
Purchase protection programs come with a list of exceptions, when it comes to coverage. For example, some cards specifiy they don't cover items that "mysteriously disappear with no evidence of a wrongful act," used or pre-owned items, antiques and collectibles, computer software, or motorized vehicles.
The key to taking advantage of purchase protection? Understand your card’s policy, and file any claims within the required time.
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Extended warranties
Ever buy a laptop, TV, refrigerator, or microwave that works fine until a week after its warranty ends? Then it breaks down? That’s frustrating. But you might find financial relief if your credit card provides extended warranty protection.
Extended warranties are additional protection plans that extend the manufacturer's warranty on eligible items purchased with a credit card. They offer coverage against defects or malfunctions that may occur after the original warranty expires. Here's how extended warranties typically work with credit cards:
- Eligible purchases. To be eligible for an extended warranty, you must use your credit card to make the purchase. Different credit cards may have varying criteria for eligible purchases, so it's important to review the terms and conditions of your specific card.
- Extending the warranty. When you make a qualifying purchase with your credit card, the extended warranty benefit kicks in. It essentially adds an extra period of coverage to the original manufacturer's warranty, extending the time during which you can seek repairs or replacements for covered items.
- Coverage period. The extended warranty period varies depending on the credit card issuer and the type of item being protected. Typically, it extends the warranty by an additional year or more, but the specific duration will be outlined in your credit card's terms and conditions.
- Claims process. If you encounter a covered defect or malfunction within the extended warranty period, you need to initiate a claims process with your credit card issuer. The issuer may require you to provide documentation such as the original receipt, proof of the manufacturer's warranty, and details of the issue.
- Repairs or reimbursement. Once your claim is approved, the credit card issuer may provide options for repair, reimbursement, or replacement of the covered item. The specific resolution will depend on the issuer's policies and the nature of the claim.
There are some limits, however. American Express, for example, won't provide coverage if you damage an item by altering or modifying it. You also won't receive extended warranty coverage for artwork, furs, or other one-of-a-kind items.
24/7 fraud monitoring
Several credit cards offer 24/7 fraud monitoring, a service that can prevent scammers from using your credit card to rack up fraudulent purchases in your name. Credit cards can offer 24/7 monitoring through various methods and technologies to help detect and prevent fraudulent activity on cardholder accounts.
Maybe you or someone else used your card to make an unusually large purchase at a jewelry store thousands of miles from your home. Your credit card provider might call or text you to ask if you made the purchase. If you did, your provider will approve the charge. If you tell your card provider you didn’t make this purchase, it will cancel. You can then cancel your card and order a replacement to keep whatever scammer is behind the purchase from racking up additional fraudulent charges.
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- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
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*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
Cell phone protection
Cell phone protection is a benefit offered by some credit cards that provides coverage for damages or theft of a cell phone. It serves as an insurance-like feature, offering financial protection to cardholders in case their cell phone gets damaged or stolen. Here's how one can typically get cell phone protection by using a credit card:
- Eligible credit card. To access cell phone protection, you need to have a credit card that offers this benefit. Not all credit cards provide cell phone protection, so it's important to check if your specific credit card includes this feature.
- Payment method. Typically, to activate cell phone protection, you must pay your monthly cell phone bill using the eligible credit card. Some credit cards require the entire bill to be paid with the card, while others may have specific spending thresholds or partial payment requirements.
- Coverage details. Each credit card's cell phone protection benefit may have different coverage limits, deductibles, and eligible incidents. It's important to review your credit card's terms and conditions to understand the specific coverage details, including the types of damages covered (e.g., accidental damage, theft) and any exclusions.
- Filing a claim. If your cell phone sustains covered damages or is stolen, you'll need to file a claim with your credit card issuer. The claims process usually involves submitting necessary documentation, such as the original purchase receipt, a copy of the police report (in case of theft), and any other supporting evidence requested by the issuer.
- Reimbursement or repair. If your claim is approved, the credit card issuer will typically provide reimbursement for repair or replacement costs, up to the coverage limit specified by your card. Some credit card issuers may offer repair services through authorized providers instead of direct reimbursement.
Price rewind
Credit cards can offer the unexpected perk of price rewind programs to provide cardholders with potential savings. Price rewind works by tracking the price of eligible items purchased using the credit card. If the price of the item drops within a specified timeframe, the cardholder may be eligible for a refund of the price difference.
Here's how one can typically access price rewind by using a credit card:
- Eligible credit card: Price rewind is a benefit provided by select credit cards. Not all credit cards offer this feature, so it's important to check if your specific credit card includes price rewind.
- Registration: To use price rewind, you may need to register your purchases or activate the feature through an online portal or mobile app provided by the credit card issuer. Registration typically involves providing details such as the date of purchase, item description, and purchase price.
- Monitoring and comparison: Once your purchases are registered, the credit card issuer's system or a third-party service will monitor the prices of those items. They will compare the prices to track potential reductions within a specified timeframe, usually ranging from a few days to several months.
- Price drop identification: If the system detects a lower price for the registered item during the monitoring period, you may be eligible for a refund of the price difference. The system will typically notify you or provide details on how to initiate a claim.
- Claim submission: To claim the refund, you'll usually need to submit a request through the credit card issuer's online portal or by contacting their customer service. This process may require providing proof of the lower price, such as a screenshot or a link to the reduced price.
- Refund processing: If your claim is approved, the credit card issuer will refund you the price difference. The refund may be provided as a statement credit or in some cases as a physical check.
Discounts and bonus points
Some credit cards give you discounted prices or bonus rewards points when shopping online. This can be because a credit card has a partnership with a retailer to offer exclusive discounts or promotions when you use the card for purchases at those establishments. These discounts may be in the form of a percentage off, free shipping, or access to special sales or events. Other ways credit cards can help you save is through limited-time promotions.
Some credit card issuers provide online shopping portals where you can access a range of retailers and earn additional rewards or discounts. By starting your online shopping journey through these portals and making purchases with your credit card, you can benefit from exclusive deals, coupon codes, or increased rewards.
Of course, credit cards often feature reward programs where you earn points, miles, or cashback on your purchases. These rewards can be redeemed for discounts on future purchases, effectively lowering the overall cost. You can accumulate rewards by using the credit card for everyday spending and then redeem them for discounts at partner retailers or within the card issuer's rewards portal. Many times, co-branded cards partner with specific brands or retailers and offer enhanced discounts and rewards for purchases made at those establishments.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
FAQs
Are credit card perks worth the annual fees?
Credit card perks can add significant value, but it ultimately depends on your spending habits, lifestyle, and the specific perks offered. If the benefits outweigh the annual fee and align with your needs and preferences, it may be worthwhile. Consider the rewards, travel benefits, purchase protections, and other perks when evaluating the value of a credit card.
How do I earn rewards with my credit card?
You can earn rewards with your credit card by making eligible purchases. Different credit cards have different rewards programs, such as earning points, miles, or cashback based on your spending. Some cards offer bonus rewards for specific categories like groceries, dining, or travel.
Can I choose the type of rewards I want?
In many cases, credit card rewards programs offer flexibility, allowing you to choose the type of rewards you want. For example, you may have the option to redeem points for travel, merchandise, statement credits, or gift cards. Review your credit card's rewards program to understand your redemption options.
How can I maximize the perks and rewards of my credit card?
To maximize credit card perks and rewards, it's important to understand the terms and conditions of your credit card. Pay attention to bonus categories, spending thresholds, and any restrictions or limitations. Utilize the card for purchases that align with bonus categories, redeem rewards regularly, and stay updated on any promotional offers.
The bottom line
You might not think about retail perks when choosing a credit card. That’s understandable: Most people focus on a card’s APR, rewards program, or 0% balance transfer offers. But don’t ignore perks such as extended warranties and purchase protection when weighing the pros and cons of a new card. These benefits might not be as important as a lucrative cash-back program or 12 months of no interest on new purchases, but they could save you money if you use them properly.
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Writer
Dan Rafter is a freelance writer who has more than 20 years experience covering personal finance. He's written for the Chicago Tribune, Washington Post, Bankrate, CreditCards.com, Rocket Mortgage, NortonLifeLock and several others.
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