In a highly saturated credit card market, providers would throw perks around left and right to entice sign-ups. We all know the main features, like rewards, points, cash back, and miles, but some of the biggest providers, including Discover, DFS, -0.86% Citi, C, -1.00% and Chase, JPM, +0.28% are starting to cut back on the extra cardholder benefits that get low general customer usage, including price protection.
What is price protection?
If you buy something with your credit card, then see the price drop on the exact same item in a given time frame — usually between 30 and 100 days — price protection means your credit card issuer will refund you the difference. Some companies impose caps on how much you can redeem a year, or how many claims a year you can file.
Unlike purchase protection or warranty coverage, customers usually have to manually register the item, file paperwork, or otherwise prove their claim so the credit card company can track the market price. This can be a daunting task for some customers, potentially limiting how often they take advantage of the perk. While it’s definitely worth the effort for some larger purchases like big ticket electronics, customer submission of price protection claims has historically been low.