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.

RELATED TERMS
  1. Return Protection

    A common, but little-known credit card perk allowing cardholders ...
  2. Secured Credit Card

    A type of credit card that is backed by a savings account used ...
  3. Authorized Transaction

    A credit card purchase for which the merchant has received approval ...
  4. Credit Card Balance

    The amount of charges, or lack thereof, owed to the credit card ...
  5. Credit Card Posting

    Adding recent transactions to a consumer’s credit card account.
  6. Plain Vanilla Card

    A basic credit card with no special features or perks and no ...
Related Articles
  1. Personal Finance

    Surprising Credit Card Benefits

    If you didn't read the fine print, you could be missing out on these free credit card benefits.
  2. Personal Finance

    Credit Card or Cash?

    Credit cards are convenient to use, but not always the best choice. Here are 5 times you shouldn't pay with a credit card – and 5 times you should.
  3. Personal Finance

    Purchases You Should Always Make With A Credit Card

    Credit cards aren't always bad possessions to have. There are certain perks associated with using credit cards as we make routine or irregular purchases.
  4. Small Business

    How to Use Small Business Credit Cards

    A business credit card can be a convenient way to increase your company's purchasing power, but must be carefully managed.
  5. Personal Finance

    How Credit Cards Affect Your Credit Rating

    The average American household has four cards, but does that mean more is better?
  6. Investing

    Investing In Credit Card Companies

    This investment requires keeping an eye on consumer indexes and the overall health of the economy.
  7. Personal Finance

    Credit, Debit and Charge: Sizing Up The Cards in Your Wallet

    Not all plastic is equal! Learn the difference between the three kinds, and how each can affect your finances.
  8. Personal Finance

    How Many Credit Cards Should You Have?

    National stats indicate most consumers have three or more cards - are you one of them?
  9. Personal Finance

    How Many Credit Cards Should You Have?

    Having several credit cards provides many benefits. Here are a few factors to consider when you’re deciding how many credit cards you need.
  10. Personal Finance

    10 Reasons to Use Your Credit Card

    There's a surprising credit card strategy you should employ as a consumer: Use your credit card for everything (well, almost).
Trading Center