Purchase protection is a special perk that allows you to get reimbursed for something you bought with your credit card in certain situations.
Not all products are eligible for purchase protection, and most credit card issuers put a limit on how much you can be reimbursed from a single claim.
The credit cards with the best purchase protection benefits have high reimbursement limits and clearly outline their policies to their cardholders.
There are several reasons to use a credit card for a large purchase. For starters, many credit cards let you earn rewards as a percentage of your spending, and most come with zero liability coverage that protects you from fraud.
Some credit cards also come with added protections and benefits that can help you get reimbursed for eligible products if something goes wrong. This includes purchase protection, which is a unique perk offered through credit cards that can help repair or replace items you buy for months after a purchase is made.
If you’re planning on spending a lot of money on furniture, electronics or another large purchase, keep reading to learn more about purchase protection, how this coverage can help you save money and which credit cards have it.
Comparing the best for credit cards with purchase protections
Card name
Best for
Card Protection
Annual fee
Chase Freedom Flex®*
Rotating categories
$500 per claim and $50,000 per account
$0
Chase Freedom Unlimited®
Everyday Spending
$500 per claim and $50,000 per account
$0
Blue Cash Preferred® Card from American Express
Groceries
$1,000 per claim and $50,000 per account
$95
Ink Business Cash® Credit Card
Small businesses
$10,000 per claim and $50,000 per account
$0
American Express® Business Gold Card
Business executives
$1,000 per claim and $50,000 per account
$375
Top credit cards with purchase protection
There are plenty of rewards credit cards with purchase protection that can help you recoup your losses when damage or theft occurs. Here are some of the best options available today:
The Chase Freedom Flex®* offers lucrative rewards in an array of popular spending categories and pretty good purchase protection. You can claim protection on new purchases for 120 days against damage or theft up to $500 per claim and $50,000 per account.
Also, you earn 5 percent back after activation on up to $1,500 spent in rotating quarterly categories and on travel booked through Chase Travel℠.
Pros
This card comes with Mastercard benefits, including cellphone protection and ShopRunner membership.
You earn Chase Ultimate Rewards with this card, which is useful if you want to redeem cash back for travel.
Cons
You have to remember to activate your quarterly categories or you’ll miss out on your highest cash back opportunity.
The Freedom Flex has a high variable APR range of 20.49 percent to 29.24 percent, which isn’t ideal if you need to carry a balance.
The Chase Freedom Unlimited® offers the appeal of a boosted cash back rate for general purchases plus bonus categories. You won’t pay an annual fee, yet you’ll earn the basic rate of 1.5 percent back on everyday spending, as well as 5 percent back on travel booked through Chase Travel℠ and 3 percent back on dining and drugstore purchases.
Pros
The back rewards rate on this card matches most flat-rate cards, which makes a great everyday card.
The welcome bonus doesn’t require you to spend a certain amount. Instead you get boosted rewards for the first year of having the card.
Cons
The purchase protection only covers up to $500 per claim, meaning larger items like laptops won’t be fully covered.
The Freedom Unlimited has a high variable APR range of 20.49 percent to 29.24 percent, which isn’t ideal if you need to carry a balance.
The Blue Cash Preferred® Card offers one of the best rewards rates on groceries, streaming services and U.S. gas stations among all rewards credit cards on the market today.
This card also covers new purchases for 90 days against damage or theft up to $1,000 per claim and $50,000 per account.
Pros
The amount you can claim on purchase protection is twice as high as other issuer’s protection programs.
The card includes a pretty good intro APR offer, great if you have a big purchase coming up or need to pay down some debt.
Cons
The card has a $95 annual fee so make sure you earn regularly in the rewards categories on this card.
The highest rewards category has a spending cap of up to up to $6,000 per year.
If you’re looking for a business credit card that offers purchase protection on business-related purchases, it’s hard to beat the Ink Business Cash® Credit Card. The fact that coverage is worth up to $10,000 per claim is good since you may need more coverage if you use your card to buy pricey workplace equipment or other business supplies.
Pros
The card includes an intro APR offer, which is great for a business starting off and figuring out its budget.
There’s no annual fee.
Cons
There may not be as much value in the card if you have a business that doesn’t need an office.
The rewards categories have relatively low spending caps at $25,000 in combined purchases for the 5 percent categories and the same $25,000 in combined purchases for the 2 percent categories.
The American Express® Business Gold Card has the same purchase protection as the Blue Cash Preferred Card from American Express but with a higher price tag – and for good reason. On top of earning 4X points on your top two eligible categories where your business spends the most each month (such as in transit, advertising in select media like online, TV, radio and more), there’s also valuable business and travel credits included. It also has cell phone protection and extended warranty.
Pros
The spending cap is quite high at up to $150,000 per year for a business card.
On top of the purchase protection, this card includes accidental damage and protection.
Cons
This card comes with a very high annual fee of $375.
If you travel often, this card doesn’t include luxury travel perks that can justify the price.
How to use purchase protection
Credit cards that offer purchase protection only extend this coverage when you use your credit card to pay for the item you want coverage for. However, you may also be able to use this coverage if you paid for an item with rewards earned with a credit card that offers purchase protection. Here is what Chase says about qualifying for coverage in their fine print:
Purchase protection “can repair, replace or reimburse you for eligible items in the event of theft or damage when items are purchased with an eligible Chase card or with rewards earned on an eligible Chase card.”
Once you pay for an item with your credit card, rewards points or a combination of the two, the item is automatically eligible for coverage provided it’s not listed as an excluded item in your card’s benefits guide. If your item is damaged or stolen while your purchase protection coverage is still in force, you are typically instructed to file a claim by calling a claims hotline or filling out a claims form online.
Common purchase protection exclusions
If you plan to use your credit card for purchase protection, you should read through the fine print of your coverage to see which items do and do not qualify.
Used or pre-owned items
Items left in plain sight before they were stolen
Antiques and other collectibles
Computer software
Items purchased commercially for resale
Boats and other motorized vehicles
Items confiscated by the government may also be excluded, as well as losses due to acts of war, items with normal wear and tear or items that mysteriously disappear.
The bottom line
If you plan on making a large purchase and want some peace of mind in case something goes wrong, signing up for one of the best purchase protection credit cards makes a lot of sense. Not only can you earn rewards for shopping, but you may get reimbursed or see your item replaced if it’s damaged or stolen while your coverage is in force.
But the best part about credit card purchase protection is that it’s offered free as a cardholder perk. Since you can get coverage without paying for it, you might as well take advantage.
*Information about the Chase Freedom Flex® has been collected independently by Bankrate. Card details have not been reviewed or approved by the issuer.
Frequently Asked Questions (FAQs) about credit cards and purchase protection
Not all purchases qualify for purchase protection, and exclusions can vary from issuer to issuer.
Typically, credit card purchase protection applies to purchases you make with your credit card for a specific amount of time. With this important coverage, you can be reimbursed for an item or receive a replacement if your purchase is damaged or stolen, usually within 90 to 120 days.
But keep in mind that purchase protection is never offered in unlimited amounts. Generally speaking, you’ll have a per-claim limit and an annual limit or lifetime limit on your plan. Certain types of purchases also tend to be excluded from purchase protection coverage, which we’ll go over below.
To file a purchase protection claim, follow these step-by-step procedures and ensure you have the necessary documentation ready:
Check if your credit card offers purchase protection and understand the specific terms, such as the coverage period and limits.
Gather required documentation, whether it’s a receipt, a card statement or a police report for a stolen item.
Contact your credit card issuer about the claim as soon as possible. This can typically be done via phone or online.
Provide all the required documentation to your credit card issuer and submit your claim. This may include filling out a claim form provided by the issuer.
Keep in touch with your credit card issuer to track the progress of your claim and provide any additional information if requested.
Once your claim is approved, the issuer will reimburse you according to the terms of your card’s purchase protection policy.
