Canadian Credit Card Price Protection

Have you ever made a purchase to find that only days later it goes on sale? It’s annoying, I know. While you may think that your next move is to either return the product and repurchase it, or just bite the bullet and remain out of pocket. But, with the right credit card, you actually have a third option of price protection coverage, which can refund you the difference. No returns or calls to customer service necessary!

Not many Canadian credit card issuers still offer this option, though MBNA does. In this article, we’ll explore the details of price protection and discuss how the issuer still provides this money-saving perk. We will also touch on how to request price protection refunds should you find yourself needing one.

What Is Credit Card Price Protection in Canada?

Credit card price protection is a feature that reimburses you if the price of an item you buy drops within a specific timeframe after your initial purchase. Typically the eligibility window is between 60 and 90 days but it depends on the specifics of the credit card.

The card issuer covers the difference here, so you don’t have to. The catch? You must use the credit card with this coverage for the full purchase and have the relevant documentation to back it up. Your account must also be in good standing, meaning that you make at least the credit card minimum payment every month and pay it on time. Every time.

This type of coverage differs from credit card purchase protection insurance, which safeguards you in the event of accidental damage or theft of the product. It is also different from credit card extended warranty insurance that covers manufacturing defects and other failures.

How Credit Card Price Protection Works

The best way to understand this type of coverage is to look at an example.

Imagine that you buy a new pair of Apple AirPods for $329. Then, a couple of weeks later, you see an advertisement for those same AirPods, at the same shop, for only $299. If you made the purchase on a credit card with price protection coverage and have the documentation to support your case, you can make a claim. If it gets approval, you could end up with a refund of $30 on your credit card. And this happens without you needing to return the AirPods then turn around to repurchase them at the lower price.

Even if you do not need to use the price protection coverage on your card, it is beneficial to have the option available. It provides you with assurance that you got the item at the best possible price.

Canadian Credit Cards with Price Protection

You can probably tell that price protection is quite a valuable savings tool. One that can cost the issuer a decent amount of money over time. With this in mind, it’s no surprise that most Canadian credit card issuers have removed price protection coverage. However, among the best MBNA credit cards in Canada, several still include price protection.

With each of the MBNA price protection cards, some limitations apply on eligibility. Let’s look at the MBNA Rewards World Elite® Mastercard®, for example, which offers 60 days of coverage. For purchases made on this card, price protection payments are only available on amounts of between $10 and $500 per item. There is also an annual cap of $1,000 in refunds per calendar year.

Making a Price Protection Claim in Canada

When filing a price protection claim, you’ll need to start by completing a claim form, which you can find from your credit card issuer. You will also need to show the proof of your purchase. This can include a receipt showing the details of the item purchased, the retailer and the price. Also, be sure to demonstrate that the purchase took place on an eligible credit card.

In addition to the purchase details, your issuer will require evidence of the new, lower price. You can provide this as an advertisement or a post from the store’s website. Just be sure your documentation shows the retailer’s name, the new price, and the date.

Finally, submit your price protection claim. You can do this by uploading it to the provider’s website or sending it in by mail. For details on your issuer’s insurance company, along with the process for how to file a price protection claim, check the benefits guide for your specific card.

Tip: Be sure to submit your claim within the appropriate eligibility time frame. For example, the MBNA Rewards World Elite® Mastercard® allows you to make a claim up to 60 days after purchasing. If you wait until this window has passed, you are no longer eligible to make a claim.

Receiving a Price Protection Claim Refund

If you submit a price protection claim and receive an approval, you may be wondering what’s next. In this case, you will get a refund for the difference between the original purchase price and the new, lower cost. Approved refunds are typically made as a statement credit, which you can use towards future purchases. At times, this credit might even show as a negative credit card balance.

Takeaway

Unlike optimally redeeming your credit card points to fly first class to Europe, credit card price protection isn’t a flashy perk. But it is practical. And it can help to save you money.

If a product’s price drops shortly after you buy it, this feature provides you with the opportunity to reclaim the difference without needing to make an awkward call to customer service.

While many issuers in Canada have phased out the coverage, you can still use MBNA’s cards for additional confidence making expensive purchases. If you do overpay for a purchase, the claims process requires a bit of work, but it can ultimately put money back into your pocket.