topic Re: Purchase Protection - Not often discussed here in Credit Cards

Purchase Protection - Not often discussed here

Anonymous — Sun, 27 Sep 2015 15:28:56 GMT

Honestly, I've NEVER paid much attention to purchase protection. The first time I could have had a use for it, it turns out I used 'the wrong card'. Someone mentioned the superior protection on the AmEx Platinum and PRGs this morning and I thought maybe if I'm buying certain things, that might be good to pay attention to vs. a couple extra rewards.

Have you used purchase protection? Do you allow that to influence what card you use? If so, on what kinds of purchases?

My 'wrong decision' was when I bought my first iPhone 6+. DH and I both pre-ordered and threw them on a Cap One card that was sock drawered at the time since it was easy. It was only a platinum (old HSBC) at the time. My phone was stolen. It's now my understanding some purchase protection covers stolen and I think some doesn't. It WAS within the first 90 days. The only sizeable purchase I can think that I've maid since re-buying the iphone (full price on some better card...Freedom Visa Sig most likely) was my Apple watch on my Cash Plus (5% cat on Visa Sig). As I contemplate a 6s+ (which I really don't think I'll get, but I keep circling around) I have been influenced by the Apple Pay/Discover promotion and think that that would be what I should do. But then I can't order one, I have to go get it in the store. But I hadn't thought about protection. I'm sure it's pretty good. But since we're trying to meet spend on DH's plat, maybe that'd be a better idea protection wise. Probably not based on the Apple Pay deal, but what if that wasn't around...then would it balance out? Or if I decide I want it and I want to order one, then I could order on the plat. (again, probably not, but...)

I just thought this would be an interesting discussion to take us away from talks of AA, CLI etc.

And I think I'll go look into the protections on my cards.

Re: Purchase Protection - Not often discussed here

Anonymous — Sun, 27 Sep 2015 15:31:28 GMT

Good post! This morning I just signed up with Citi for protection and now I am going to check my other cards. Thanks!

Re: Purchase Protection - Not often discussed here

kdm31091 — Sun, 27 Sep 2015 15:33:02 GMT

It's not something I have ever personally used, as 99% of the time, these things are more of a PITA to use then they are really worth. While it's comforting to have the benefit if something major gets stolen/damaged/etc, it's not worth the hassle unless you're talking about a huge purchase (and to be fair the iphone would qualify as a huge purchase!).

A bit off topic, but I wouldn't go looking to make purchases because you're getting a discount. It seems you only want to purchase the iphone because you'll get the 20% apple pay or whatever. While that is a good deal, you're still spending 80% and if it's something you don't need, why waste the money?

Amex's protection is supposed to be pretty good but keep in mind you're paying for it with the AFs so it may be a wash vs using the protection on a no-AF Visa Sig, etc.

Re: Purchase Protection - Not often discussed here

Anonymous — Sun, 27 Sep 2015 15:37:50 GMT

@kdm31091 wrote:

A bit off topic, but I wouldn't go looking to make purchases because you're getting a discount. It seems you only want to purchase the iphone because you'll get the 20% apple pay or whatever. While that is a good deal, you're still spending 80% and if it's something you don't need, why waste the money?

Nah, I WANT it. Certainly don't NEED it. So the discount helps justify the purchase. But my youngest niece might be old enough that we could do the iPhone shuffle and trickle down the old iphones again (3 teen/pre-teen nieces that are usually recipients of old phones). I'd likely do that over selling it. That helps with the justification too.

Re: Purchase Protection - Not often discussed here

Anonymous — Sun, 27 Sep 2015 15:38:25 GMT

It's not something I have ever personally used, as 99% of the time, these things are more of a PITA to use then they are really worth.

If you've never personally used it then how do you know its a PITA to deal with *99% of the time*? 😋 Id like to see a couple responses from those with a little experience.

Re: Purchase Protection - Not often discussed here

kdm31091 — Sun, 27 Sep 2015 15:39:47 GMT

@Anonymous wrote:
It's not something I have ever personally used, as 99% of the time, these things are more of a PITA to use then they are really worth.

If you've never personally used it then how do you know its a PITA to deal with *99% of the time*? 😋 Id like to see a couple responses from those with a little experience.

Haha, well, most warranties and protection services do not make things simple for the person trying to use them. That's just my perspective on it.

Re: Purchase Protection - Not often discussed here

Anonymous — Sun, 27 Sep 2015 15:45:50 GMT

I used purchase protection on my iPhone 6 which shattered the day after I purchased it. I replaced the phone via AppleCare however they still charged something like an $80 copay. The Citi PP covered the copay so it was entirely free.

It wouldn't say it was a PITA. I just called the 1800 #, they mailed me some forms which required copies of the original receipt/repair bill and a pic of the damage. They then cut me a check shortly thereafter.

It's definitely a feature I look out for on my cards. If I remember correctly, Per the OPs note, I believe Discover covers 500$ while Amex covers 1k, but I'd say it's best to read both policies just in case.

Re: Purchase Protection - Not often discussed here

Anonymous — Sun, 27 Sep 2015 15:53:13 GMT

Looks like all the AmEx cards I have offer the same Purchase Protection ($1k per, up to $50k per year) and Extended Warranty coverage$10k per, up to $50k per year) (EDP/ED/BCP/BCE/PRG/Plat) and they offer Return coverage if the merchant won't take something back within 90 days ($300 per, $1k per year). The TE offers the first two, but not the last. All the per year seem like that might be across all cards.

They all seem to offer the same car rental blurb.

ETA: And reading the PP, limits could be different, which could make a difference. Thanks for pointing that out. I'll edit my post as I find out stuff.

Re: Purchase Protection - Not often discussed here

-Cal- — Sun, 27 Sep 2015 16:39:37 GMT

@kdm31091 wrote:
@Anonymous wrote:
It's not something I have ever personally used, as 99% of the time, these things are more of a PITA to use then they are really worth.

If you've never personally used it then how do you know its a PITA to deal with *99% of the time*? 😋 Id like to see a couple responses from those with a little experience.
Haha, well, most warranties and protection services do not make things simple for the person trying to use them. That's just my perspective on it.

Mind sharing one of your first-hand experiences? I think it would be helpful to others who are interested to know exactly which warranty/protection services to avoid.

I've personally had great experiences with several warranty/protection services ranging from Samsung TV, Apple's standard Warranty on iPhone, and I've had success returning things past standard 30 day return window with Amex.

Re: Purchase Protection - Not often discussed here

Anonymous — Sun, 27 Sep 2015 16:48:48 GMT

And of course the HUGE news that Amex has made an "Important expansion to your Return Protection coverage" Starting Oct 14th, it now covers purchases made in American Samoa, Federated States of Micronesia, Marshall Islands, Palau, Guam and Northern Marshall Islands.

So if you were hesitating about getting an Amex...!

(OK, so for some people this could be useful. Wouldn't call it an "important expansion" though)

Re: Purchase Protection - Not often discussed here

Open123 — Sun, 27 Sep 2015 18:02:26 GMT

From my own personal experience, those I know IRL and various reports of experiences of those on the net, Amex’s warranty, purchase protection, and handling of Merchant disputes is without peer. With most claims, Amex handles this process quickly and with very little hassle.

For any large purchase, I would ONLY use an Amex period. The difficulties and additional steps involved with claims with Visa/MC/Discover aren’t worth the hassle, in my view.

All Amex cards have a similar Warranty protection. Any purchase up to $10,000, on any Amex card, extends the Manufacturer’s warranty an extra year, but not to exceed five. In other words, if your products warrant is 2 years, then Amex will cover it for year 3. If a product’s warrant is 5 years, then there is no extension.

For Purchase protection, up to 90 days coverage for theft or accidental damage, Amex Platinum and PR Gold offers coverage for $10K per claim, and $50K in aggregate claims per calendar year. All other Amex cards are limited to $1K per claim, but still allowed up to $50K per year.

Moreover, for Merchant disputes, Amex may at their discretion issue a chargeback in the cardmember’s favor without any input from the Merchant (they don’t even have a right to present their side without being asked by Amex), and no right of appeal. In other words, if Amex believes you, that’s enough, unlike with Visa/MC/Discover.

For these reason, I will only make certain high priced purchases on my Amex cards, the Plat if I require $10K accidental/theft protection. With these purchases, I forgo the extra rewards, and will ONLY make these purchases from those Merchants who accept Amex.

Re: Purchase Protection - Not often discussed here

Anonymous — Sun, 27 Sep 2015 18:15:42 GMT

@Open123 wrote:
From my own personal experience, those I know IRL and various reports of experiences of those on the net, Amex’s warranty, purchase protection, and handling of Merchant disputes is without peer. With most claims, Amex handles this process quickly and with very little hassle.

For any large purchase, I would ONLY use an Amex period. The difficulties and additional steps involved with claims with Visa/MC/Discover aren’t worth the hassle, in my view.

All Amex cards have a similar Warranty protection. Any purchase up to $10,000, on any Amex card, extends the Manufacturer’s warranty an extra year, but not to exceed five. In other words, if your products warrant is 2 years, then Amex will cover it for year 3. If a product’s warrant is 5 years, then there is no extension.

For Purchase protection, up to 90 days coverage for theft or accidental damage, Amex Platinum and PR Gold offers coverage for $10K per claim, and $50K in aggregate claims per calendar year. All other Amex cards are limited to $1K per claim, but still allowed up to $50K per year.

Moreover, for Merchant disputes, Amex may at their discretion issue a chargeback in the cardmember’s favor without any input from the Merchant (they don’t even have a right to present their side without being asked by Amex), and no right of appeal. In other words, if Amex believes you, that’s enough, unlike with Visa/MC/Discover.

For these reason, I will only make certain high priced purchases on my Amex cards, the Plat if I require $10K accidental/theft protection. With these purchases, I forgo the extra rewards, and will ONLY make these purchases from those Merchants who accept Amex.

Hmmm, I'm only seeing $1k when I look online for PRG (and I admit, I didn't check Plat before...that one IS $10k). I haven't gone to get my paper T & C for the PRG, and we know AmEx's site has been a bit wonky. But it's only saying $1k for me. WAIT...

Digging deeper...

IMPORTANT NOTICE Purchases made prior to November 15, 2015, are eligible for Purchase Protection, which can help protect eligible purchases for up to 90 days from the date of purchase if the item is stolen or accidentally damaged with coverage up to $1,000 per occurrence. Purchases made on or after November 15, 2015, are eligible for increased Purchase Protection coverage which can help protect your purchase for up to 90 days from the date of purchase if the item is stolen, accidentally damaged, or lost with coverage up to USD $10,000 per occurrence. Existing Card Members will be informed of this benefit enhancement as part of their September 2015 billing statement.

Thanks for making me check. I'm pretty sure you're the one who said something on another thread that sparked this.

Re: Purchase Protection - Not often discussed here

yfan — Sun, 27 Sep 2015 18:54:51 GMT

My understanding is that for the most part on Visa and MC products, the purchase protection is provided by the networks, not the banks. Banks certainly may provide additional coverage if they choose on select products.

But the discusison on purchase protection is a worthy one. I have said more than once that I have saved more money using purchase protection, extended warranty and price protection (this is when an issuer or network covers the price difference if the price of a covered item within a given period of time - Mastercard does this for 60 days with World and World Elite covering this 120 days, Discover does this for 90 days) - then I have on straight cashback. These considerations govern my major purchases for cashback. Cashback is the second consideration - if the coverage with the o thers are roughly equivalent.