Credit Card Feature: Purchase Protection

Information verified correct on September 29th, 2016
Woman with shopping bags

You can enjoy peace of mind when shopping with your credit card with purchase protection, just make sure you read the terms and conditions to avoid disappointment.

The vast majority of gold and platinum credit cards offer purchase protection as a complimentary perk. You may also be able to purchase this feature on standard credit cards. Purchase protection is one of those features, along with free travel insurance and extended warranties, that has come about as a result of the competition between credit card companies in Australia.

Comparison of Credit Cards with Purchase Protection

Rates last updated September 29th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
American Express Essential Credit Card
Receive a $50 credit on eligible spend and get Smartphone screen insurance combined with a no annual fee for life card. Also enjoy a 0% p.a. balance transfer rate for 12 months.
14.99% p.a. 0% p.a. for 12 months with 1% balance transfer fee $0 p.a. Go to site More info
American Express Qantas Discovery Card
Bonus points and purchase protection repairs or replaces eligible items if they are accidentally broken or stolen within 90 days of purchase.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $0 p.a. Go to site More info
HSBC Platinum Credit Card
The HSBC Platinum Credit Card offers purchase protection cover for eligible purchases.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
American Express Velocity Escape Card
Enjoy 7,500 bonus Velocity Points when you meet the minimum spend requirement and earn up to 2 points for every $1 you spend, together with a $0 annual fee.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $0 p.a. Go to site More info
American Express Platinum Edge Credit Card
Receive 10,000 Membership Rewards Bonus Points when you meet the minimum spend requirement. Enjoy 0% p.a. for 12 months on balance transfers and receive a complimentary Virgin Australia domestic economy return flight every year.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $195 p.a. Go to site More info
ANZ Frequent Flyer Platinum
Get 50,000 bonus Qantas Points after first eligible purchase is made within three months. Earn up to 1.5 Qantas Points per $1 spent on purchases.
19.99% p.a. $295 p.a. Go to site More info
HSBC Platinum Qantas Credit Card
Receive 60,000 bonus Qantas Points on eligible spend within 3 months. Enjoy access to premium benefits and complimentary insurance.
19.99% p.a. $199 p.a. Go to site More info
ANZ First Visa Credit Card - Exclusive Offer
Take advantage of this exclusive offer and enjoy 0% p.a. for the first 12 months on balance transfers and 0% p.a. for the first 3 months on purchases.
0% p.a. for 3 months (reverts to 19.74% p.a.) 0% p.a. for 12 months $30 p.a. Go to site More info
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
Citi Rewards Credit Card - Platinum Card
Enjoy a reduced annual fee on the first year, 0% p.a. for 24 months balance transfer offer, Citi Reward Points on eligible spend, plus a complimentary travel insurance.
20.99% p.a. 0% p.a. for 24 months with 1.5% balance transfer fee $199 p.a. annual fee for the first year ($249 p.a. thereafter) Go to site More info
ANZ First Visa Credit Card
Enjoy a low annual fee, interest-free days on purchases and a low minimum credit limit.
19.74% p.a. 0% p.a. for 18 months with 3% balance transfer fee $30 p.a. Go to site More info
Citi Rewards Credit Card - Classic Card
Earn points for every dollar spent in the first three months and enjoy 0% p.a. on balance transfers for 12 months.
20.99% p.a. 0% p.a. for 12 months $99 p.a. Go to site More info
ANZ Platinum Credit Card - Exclusive Offer
Receive $200 back when you spend $500 in the first 3 months. Also enjoy a $0 annual fee for the first year.
19.74% p.a. $0 p.a. annual fee for the first year ($87 p.a. thereafter) Go to site More info
Citi Clear Platinum Card
A low rate platinum credit card with a low interest rate on purchases and balance transfers.
0% p.a. for 9 months (reverts to 14.99% p.a.) 0% p.a. for 9 months $99 p.a. Go to site More info
Citi Rewards Credit Card - Signature
Complimentary international travel insurance, transit accident insurance, interstate flight inconvenience insurance, purchase cover insurance and extended warranty insurance.
20.99% p.a. 0% p.a. for 6 months $199 p.a. annual fee for the first year ($395 p.a. thereafter) Go to site More info
Emirates Citi World MasterCard
Receive protection through guaranteed pricing scheme, purchase cover insurance, and extended warranty insurance.
20.99% p.a. 0% p.a. for 9 months $149 p.a. annual fee for the first year ($299 p.a. thereafter) Go to site More info
American Express Qantas Premium Card
Earn as much as 30,000 bonus Qantas Points when you meet the minimum spend requirement. Enjoy frequent flyer benefits including uncapped Qantas Points per $1 spent, complimentary travel insurance and Qantas Club lounge invitations.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $249 p.a. Go to site More info
ANZ First Student Card
An ideal credit card for students with 44 days interest-free on purchases with $0 annual fee in the first year. Access your account on the go with the goMoney™ app.
19.74% p.a. $0 p.a. annual fee for the first year ($30 p.a. thereafter) Go to site More info
American Express Velocity Platinum Card
Enjoy up to 50,000 bonus Velocity Points when you meet the minimum required spend and earn up to 3 rewards points per dollar spent. Also receive a complimentary return flight every year.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $349 p.a. Go to site More info
American Express Qantas Ultimate Card
Enjoy 50,000 bonus Qantas Points when you meet the minimum spend requirement and earn up to 3 Qantas Points for every $1 spent. Also enjoy a complimentary return flight every year.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $450 p.a. Go to site More info
Virgin Australia Velocity Flyer Card - 0% Interest Offer
Receive 0% p.a. for 12 months on purchases, 0% p.a. for 6 months balance transfers and an exclusive $129 Virgin Australia Gift Voucher every year.
0% p.a. for 12 months (reverts to 20.74% p.a.) 0% p.a. for 6 months $129 p.a. Go to site More info
Virgin Australia Velocity High Flyer Card - 30k Bonus Points offer
Receive 30,000 bonus Velocity Points and earn 1 Velocity Points per $1 spent. Receive an exclusive $129 Virgin Australia Gift Voucher and two complimentary Single Entry Virgin Australia domestic Lounge passes each year.
20.74% p.a. 0% p.a. for 6 months $144 p.a. annual fee for the first year ($289 p.a. thereafter) Go to site More info
NAB Premium Card
Benefit from Premium credit card advantages including travel insurance, higher credit limits and VIP Lost Card Cover. 0% p.a. for 15 months on purchases and balance transfers.
0% p.a. for 15 months (reverts to 19.74% p.a.) 0% p.a. for 15 months with a one off 2% balance transfer fee $90 p.a. Go to site More info
Citi Simplicity Card
Enjoy up to 55 interest-free days and a low interest rate on purchases plus enjoy free bottles of wine from Citibank Dining Program. Offer ends on 31 March 2017.
11.99% p.a. for 24 months (reverts to 19.99% p.a.) $0 p.a. Go to site More info
ANZ Rewards Travel Adventures card
Pay no overseas transaction fee on purchases and receive complimentary domestic return flight and lounge passes each year you hold the card when you spend $500 on eligible purchases within the first three months.
20.24% p.a. $225 p.a. Go to site More info
American Express Platinum Card
Receive 80,000 Membership Rewards Bonus Points when you meet the minimum spend requirement and earn up to 3 points per dollar spent. Gain access to travel insurance, $300 Platinum Travel Credit every year and access to 800 VIP airport lounges.
$1,200 p.a. Go to site More info
Citi Rewards Platinum Card - Cashback Offer
Earn $250 cashback on eligible spend, plus enjoy 0% p.a. balance transfer offer for 12 months, discounted annual fees for the life of the card and a complimentary travel insurance.
20.99% p.a. 0% p.a. for 12 months $99 p.a. annual fee for the first year ($199 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info

Purchase protection

What is purchase protection?

When you buy goods on your credit card, you may be eligible for purchase protection insurance. Usually this insurance is available for up to three months against loss, theft or accidental damage in certain situations for items purchased with an eligible credit card.

What are the types of purchase protection?

Generally, there is only one type of purchase protection with your credit card, but there are different terms and conditions that state when a purchase will qualify for cover and when the benefits will be provided. It is important to read the fine print for important information about the cover, including the exclusions and the requirements for each claim. Some claims may require an excess as well.

Although the terms and conditions of purchase protection will differ from one credit card provider to another, it usually covers against theft, loss or accidental damage that occurs within 90 days or three months of the purchase date – check the terms and conditions to see which one applies to you. Purchase protection may provide a replacement or a refund of the purchase price. There may also be an eligibility criteria that apply, such as the minimum price paid for the item, so it is always a good idea to check the terms and conditions to see exactly what protection is afforded.

How does purchase protection work?

When making a purchase with your eligible credit card, you should always keep the receipt as you will need this to make your claim. The insurer may also need you to provide other documents to support your claim.

It’s also important to know that your credit card provider isn’t the one who insures you, your credit card provider would have partnered up with an insurance company to provide you with cover. So if you intend to make a claim, you need to contact the insurer directly, not the credit card provider.

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How to compare purchase protection

  • Insurance policy. It should be automatically available if you’re a cardholder of the lender at no additional cost. It lasts for ninety consecutive days or three months after your purchase.
  • Privacy. Your information should only be disclosed in order to monitor your claims and prevent fraud.
  • Complaints and disputes. If you have a complaint about your insurance product, it is recommended that you go to your lender in person. This process should be relatively simple.
  • The effort put into your claim. When making a claim, it is expected that you give your lender all the help that is required. Make sure that the instructions and documentation required is reasonable.
  • Fraudulent claims. When making a claim you have the responsibility to be honest. If any claim is fraudulent you may no longer be eligible for purchase protection.

Pros and cons of purchase protection

Pros

  • Peace of mind. Be covered for up to three months against loss, theft or accidental damage to goods purchased on your credit card (check the terms and conditions to be sure exactly which items are covered).
  • Complimentary with your credit card. Protection purchase is usually a complimentary service with high annual fee and reward credit cards, so it may be worthwhile to take advantage of the service just because it’s there.

Cons

  • There may also be a limit on how much the insurance will pay out. Some credit cards even offer refund protection, meaning that the purchase price will be refunded by the card provider should a merchant refuse a refund on an eligible item. Because many people do not particularly bother to read the fine print of their credit card contracts, nor even the smaller print easily viewable on the web page, it may not even be apparent to them that their card offers purchase protection.

Things to avoid about purchase protection

  • If you have any doubts about purchase protection, don’t hesitate to call the credit card provider and ask a representative directly. If such a feature appeals to you and you can envisage a situation where you would make use of it, then it is advised that you check what is and is not covered. Do make sure you ask to be referred to the specific page in the terms and conditions so you can verify what you are being told. It is quite common that a credit card adviser can offer advice that they’re not 100% sure about themselves.
  • While purchase protection is not is not perfect and does not offer total protection in every situation, remember that it is only a perk and should not be the reason for having a credit card.
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Frequently Asked Questions about purchase protection

Do Visa credit cards have purchase protection?

Some credit cards in the Visa card range will offer purchase protection. Again, please check our credit card reviews to see whether this service is included.

Is there such thing as credit card with free purchase protection?

Purchase protection is generally a complimentary service associated with high annual fee and rewards credit cards. Since you’re paying such a high annual fee for the credit card, you’re rewarded with extra perks such a purchase protection.

How does it take for credit cards to have purchase protection?

Usually the service is instantly included into your credit card. When you need to make a claim, you then contact the insurer, not the credit card provider. The amount of time it takes for your reimbursement depends on the insurer and case by case basis – it may be a good idea to check the terms and conditions for an indication.

If you make purchases online or over the phone with your credit card it is worth comparing platinum or gold credit cards that offer purchase insurance. If you often buy high ticket price items you may want to consider comparing the range of Black Credit Cards.

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2 Responses to Credit Card Feature: Purchase Protection

  1. Default Gravatar
    Joanne | September 8, 2015

    I paid for an item 8 months ago on my HSBC Platinum card but as yet it has not been supplied. Can my card’s purchase protection assist?

    • Staff
      Sally | September 9, 2015

      Hi Joanne,

      Thanks for your inquiry.

      There are a few factors that may affect your eligibility. As such, it’s ideal to check the terms and conditions or contact HSBC directly to confirm what you’re covered under.

      Please see page 50 of the terms and conditions PDF I’ve sent to your email together with HSBC’s contact number.

      I hope this helps.

      Thanks,

      Sally

Credit Cards Comparison

Rates last updated September 29th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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