The Credit Card Perk You Need to Know About!
We all look for the popular perks like free lounge access, insurance, and free bags. However, there’s one benefit, far less known and far less common, that may be worth more than any other credit card benefit offered in the Canadian marketplace—Price Protection.
Price protection allows you to claim the difference between the price you paid for a product and the sale price you may have found for the same product within 60 days after your purchase!
So, imagine you buy a BBQ from Home Depot for $500, only to find the exact same BBQ on sale at Home Hardware the following month for $400. You’d be entitled to claim the $100 difference if you bought the BBQ with a credit card that includes a price protection feature.
The amazing thing is, it’s not a one-time benefit. Depending on which credit card you have, you could be refunded up to $500 per occurrence, up to a maximum of $1,000 per year! That’s a huge saving and a constant price guarantee of the best price around.
Price Protection Definition
Price protection is basically defined as follows: “if you make a qualifying purchase with your card and find the same product advertised in Canada at a lower price within 60 days of purchase, the difference will be refunded, up to $500, subject to a calendar year maximum of $1,000 per account. Certain conditions and exclusions apply.”
How to Make A Claim
Making a claim is pretty easy. All you have to do is call the number provided by your credit card company to file a claim as soon as you discover the lower advertised price. The administrator will then send you a request form, and you’ll need to provide three things:
- A customer and merchant copy of your sales receipt
- A copy of your credit card statement in which the purchase transaction was made
- A dated advertisement/flyer to prove that the identical item was offered in Canada at the reduced price within 60 days of the date of your purchase
After you first call the administrator, they will determine whether they want to pay you the difference or buy back the original item from you at the original price.
In general, most retail items purchased in Canada are covered by credit card price protection. All issuers offering price protection will only cover items that were fully purchased with their card, however, so no paying in cash. Other typical exclusions include computers and electronic devices, vehicles (cars, riding lawnmowers, motorcycles, RVs, etc.), gift cards, fine art, anything living (like pets), insurance, any kind of ticket (airfare, entertainment, common carrier), and items bought for business. Items bought at second-hand/refurbished stores are also ineligible, as are those that were marked down for being “gently used” or a “floor model”.
Also, you can’t double dip. If the retailer refunds the difference or makes a price adjustment, you can’t make an additional claim with your credit card. Lastly, as with most credit card perks, benefits, and rewards programs, you’ll only be eligible if your account is in good standing, i.e., don’t be late!
Which Canadian Credit Cards Offer Price Protection
Interestingly, most of Canada’s best credit cards don’t offer price protection. The cards we know of that do offer price protection are the Capital One® Aspire Travel™ Platinum Mastercard® (as do other Capital One credit cards), the MBNA Rewards World Elite Mastercard and the Scotia Gold American Express card.
The MBNA World Elite’s price protection goes a lot further than CapOne’s Aspire card and the Scotia Gold card because it offers protection up to $500 per occurrence with a $1,000 per year cap, while CapOne only offers $100 per occurrence with a $500 yearly cap. The MBNA Rewards World Elite Mastercard is also one of our top ranked cash back credit cards, as it comes with a 2% cash back rate on ALL spending, which you can redeem as cash into any checking account, or as a statement credit!
The other option that shoppers can look toward for great price protection relief is the Scotia Gold American Express card. While it has comparable limits to the Aspire card, the other benefits that come with the Amex card make it particularly enticing. To begin with, the Scotia Gold card offers an enormous 15,000 points as a welcome bonus to those who can meet an easy $1,000 spending milestone in their first three months. Some of the other attractive perks include extensive medical, car rental, and travel insurance, a wide network of points redemption, and a whopping 4% cash back on groceries, dining out, and gas purchases. So, while the price protection aspect is comparable to the Aspire card, the other benefits really make it a smarter choice.
How to Exploit Price Protection
One way to help you find out if your item has gone on sale after purchase is to use a price checking tool or app. Simply plug-in the identical item into your price checker and let it work its magic. If you’re lucky, within the next 60 days, you’ll find the item at a steep discount. Check out Shopbot.ca, PriceFinder.ca, or PriceGrabber.ca to help you get started.
Price protection is an unbelievably powerful tool. Even if you’re buying items for the holidays, if you find the same item advertised for sale in Canada on Boxing Day, Black Friday, Cyber Monday, or any other deep discount day, you can still take full advantage and end up with a best price guarantee.
So, the next time you see something that catches your eye, don’t get stressed over whether you’re getting the best price. Buy it, then take the next 2 months to see if you can find a better deal. Enjoy!