How It Works
A credit card purchase protection plan works like insurance. If something you bought on a credit card is lost, stolen, or damaged for any reason, you submit proof of the loss, along with various accompanying paperwork that will vary from card to card. If your credit card has a purchase protection plan for its users, you’ll get reimbursed by your credit card company. This policy sounds great, but not every card has this protection in place.
What it Works For
Credit card protection plans are intended for credit card users who purchase an item which is lost, stolen, destroyed, or for whatever reason, unusable. For example, one American express user’s office of brand new computers was stolen. Fortunately, she was able to file a claim, and with the appropriate evidence, American Express reimbursed her business with the exact computers she lost.
Taking advantage of your credit card protection plan is similar to filing an insurance claim, except a credit card protection plan doesn’t hurt your insurance rates. The credit card user can go to his or her credit card company and easily initiate a claim. Expect to fill out a lot of paperwork, and make sure you backup your claim with appropriate evidence. Even so, the your credit card company might not reimburse you. To give yourself the highest chance of success, make sure to reference any police reports that may have been filed, take numerous pictures with accompanying documentation to clearly describe the incident to the credit card company. If you put a lot of detail and work into your request, you will have a much greater chance of getting your request fulfilled, than if you submit a botched report. According to experts in this area, your goal should not be to show how deserving you are, but more to show how they would be breaking their own rules, and potentially walking into a lawsuit, if they did not cooperate.
Since the credit card company is out to make money, they have outlawed the most common ways to render a product useless from their protection plan. Among the plethora of ways to be disqualified from your credit card’s protection plan, the most common outlawed scenarios are if your item is stolen from a car, left out in public out of arm’s reach, stolen from a gym or school due to carelessness or taken out of luggage that was not with its owner. Sadly, this is only the tip of the iceberg. Credit card companies have been known to not include animals, cars, boats, food, consumable items, and tickets.
But don’t let this discourage you, credit card companies are run by people, and people have been known to bend rules in certain scenarios. So gather tons of evidence and create a story that fits within at least part of the rules of the credit card company, and you can have hope that your earring that fell off at the zoo, or the iPad that fell in the sink will be reimbursed by your credit card company.