Holiday shopping is stressful enough without watching prices fall on gifts you already bought. A credit card with free price protection can refund the difference — a time machine for your wallet.
1 A Time Machine for Your Wallet
Holiday shopping is stressful enough without worrying about price reductions on yuletide treasures you already bought.
You might be able to avoid that regret by paying with a credit card featuring free price protection, a kind of time machine that lets you get today’s lower price for something you bought in the past. Consider it “A Christmas Carol” for your wallet. It’s “one of the most important benefits of any card that I am thinking of switching to,” says Edgar Dworsky, founder and editor of consumer news and advice site ConsumerWorld.org.
Dworsky recently used his credit card to buy a TV at a warehouse club — then saw it for $32 less at Walmart. He uploaded the Walmart ad to his credit card issuer’s price protection site and received the credit in a few days, he says.
Price protection is potentially worth hundreds of dollars per year, but filing a claim isn’t always worth the effort, especially for small refunds. And if you’re already in credit card debt, charging holiday gifts is generally a bad idea. But a credit card safeguard against falling prices can be a valuable savings tool, according to savings expert Andrea Woroch. Here’s how to make the most of it.
2 How It Works
If you buy an item with your credit card and find it for a lower price within a specific time period — such as 60 or 90 days — price protection will refund the difference, excluding surcharges such as taxes and shipping. The lower priced item must match the one you purchased exactly — same manufacturer and model.
The catch? Price protection isn’t automatic. You typically have to monitor competing prices yourself (unless you have a Citi card with a helpful Price Rewind tool). Some issuers require you to phone a claims administrator to start the process, then file paperwork online or by mail. You’ll probably need to provide a claim form, itemized receipt, card statement showing the purchase and a dated advertisement for the same item.
3 How to Use It Strategically
Use it for holiday shopping. You can buy Aunt Gertrude a crockpot in early December, then apply for a price protection refund in January if it goes on sale after the holidays. More generally, price protection lets you shop without time-consuming bargain hunting.
Make the effort matter. Prices on electronics and big-ticket items, such as appliances, can experience big cuts. Both are worth tracking. A 15% discount on a $1,000 washer-and-dryer set means a $150 refund.
Compare with the retailer policy. Many retailers have low-price guarantees or price-matching policies. They might involve less hassle than applying for a refund via credit card price protection. But credit cards typically give you two to three months to file a claim, versus one to two weeks for retailers, Woroch says.
Leverage sketchy retailers. You might find a low price at an online retailer you don’t trust. Price guarantees, whether from your credit card or a retailer, allow you to buy the item from a trusted seller for the same price, Dworsky says.
4 Limitations
Price protection is typically capped. For example, a maximum claim might be $500, with a yearly limit of $2,500 in refunds. It applies mostly to goods bought in the U.S., not services, and might exclude certain items, such as food, jewelry and event tickets. Refunds are usually paid by statement credit or mailed check. Many mainstream credit cards offer price protection, even those without an annual fee — although cards from American Express don’t offer it. To find out whether your card does — and how to use it — call your issuer at the phone number on the back of the card.
Gregory Karp is a writer at NerdWallet. Email: gkarp@nerdwallet.com. Twitter: @spendingsmart.
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Frequently Asked Questions
What is credit card price protection?
Price protection is a credit card benefit that refunds the difference if you buy an item with your card and then find it for a lower price within a specific time period, such as 60 or 90 days. The lower priced item must match the one you bought exactly, with the same manufacturer and model. Surcharges like taxes and shipping are excluded from the refund.
How do I file a price protection claim?
Price protection isn't automatic, so you typically monitor competing prices yourself. Some issuers require you to phone a claims administrator to start the process, then file paperwork online or by mail. You'll probably need to provide a claim form, an itemized receipt, a card statement showing the purchase, and a dated advertisement for the same item.
How long do I have to file compared with a retailer's policy?
Credit cards typically give you two to three months to file a price protection claim, versus one to two weeks for retailer low-price guarantees or price-matching policies. Retailer policies might involve less hassle, but the longer credit card window gives you more time to catch a price drop, especially after the holidays.
Are there limits on price protection refunds?
Yes. Price protection is typically capped. For example, a maximum claim might be $500, with a yearly limit of $2,500 in refunds. It applies mostly to goods bought in the U.S., not services, and might exclude certain items such as food, jewelry and event tickets. Refunds are usually paid by statement credit or mailed check.
Which credit cards offer price protection?
Many mainstream credit cards offer price protection, even those without an annual fee, although cards from American Express don't offer it. Citi cards include a helpful Price Rewind tool that monitors prices for you. To find out whether your card has price protection and how to use it, call your issuer at the phone number on the back of the card.
