Protections on credit cards cardholders should know about

If you paid for a product, whose price is halved the next day, you can have the difference in price refunded, if you used a credit card for the payment. Many credit cards often carry a lot of protection for those who use them, although some cardholders are not actually aware of these protections. The first protection is that of an extended warranty. Card issuers extend the coverage on purchases made for up to 1 year, depending on the rules and terms of the original warranty. American Express, for example, offers an extra warranty of 90 days, if the original warranty is 90 days. The extended warranty is 1 year if the original is 4 years. The cardholder will have to claim for these. Even gift recipients can make claims if they have all required documentation including store receipt, credit card statements, original warranty etc. Customers though, can never be sure if the extended warranty offered by the manufacturer offers anything different from what the credit card issuer is offering.

Price protection is another benefit. This is if you make an expensive purchase and then find it being sold on a discount; your credit card company might credit back the difference in some cases. Chase Sapphire credit card is an example where purchasers can claim the price difference within 90 days, providing they have proof of the lower price in the form of a printed ad or sales promotion.

Purchase protection is another feature where customers have coverage in case a product without warranty breaks or is stolen. This protection is offered for about 2 months. It is the banks` discretion to pay for damage repair, credit the amount of the purchase or replace the damaged product. However, one must note that the amount of money that can be reimbursed to the customer has a cap. In case of the stolen item, a police report might be required. Another protection offered to the customer is where a credit card issuer provides the customer with some extra time, when the retailer`s deadline for taking back an item is past. There are limitations though, such as American Express having a cap of 300 dollars on every purchase, with 1000 dollars maximum per cardholder. Credit card customers will have the refund amount credited to their account within 2 weeks, providing the customer gives all information is offered. Shipping charges may have to be paid by the customer.

Jennifer Brown

Jennifer Brown, an external business consultant working with a Fortune 500 company, has years of experience to her credit. Despite having a busy schedule through the day, she takes time out to write articles dealing with credit cards, payday loans and other financial aspects. She has completed her Bachelor degree in Financial Services from Columbia University and has been actively involved in various activities for the betterment of society.