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. Prepaid Credit Card

    A prepaid credit card is a secured card issued by a financial ...
  2. Credit Card Posting

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

    A basic credit card with no special features or perks and no ...
  4. Discover Card

    A credit card branded by Discover, a banking and payment services ...
  5. Combined Guarantee

    A credit card agreement in which any debts accrued on the card ...
  6. Purchase Rate

    The purchase rate is the interest rate applied to purchases made ...
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

    3 New Types Of Credit Cards To Look For

    These three types of credit cards are becoming popular with customers looking to pay less fees and build up their credit scores.
  3. 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.
  4. Small Business

    How to Use Small Business Credit Cards

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

    Credit Card Perks You Never Knew You Had

    From car insurance to concert tickets, be sure to take advantage of whatever your card has to offer.
  7. Personal Finance

    Take Control Of Your Credit Cards

    The plastic in your wallet doesn't have to hurt your finances. Learn how to manage it responsibly.
  8. Personal Finance

    Credit Card Tutorial

    Credit cards can be a useful tool if you know what you are getting into. Learn the risks, rules, history of credit cards.
RELATED FAQS
  1. Where are secured credit cards accepted?

    Repair a damaged credit history or establish one by opening a secured credit card account with a collateral deposit into ... Read Answer >>
Trading Center