DEFINITION of 'Price Protection'

A little-known, but common feature offered by most credit card companies that allows cardholders to receive a refund if an item bought with that credit card drops in price within a specified time period. This time period is usually within 30 or 60 days.

BREAKING DOWN 'Price Protection'

To receive the refund, you must file a claim with the credit card company whose card you used to buy the item. You must also prove the new, lower price. For example, you can prove the new price by providing a printed advertisement showing the same item and the lower price. Each credit card company will have slightly different program stipulations. There may be a refund limit per item as well as a refund limit per year (such as $250 per item and $1,000 per year). Some credit cards exclude internet purchases from their price protection offers.

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