Credit card companies are taking a hatchet to their benefits for customers — and there’s no end in sight, with the latest announcement from one of the nation’s biggest issuers.
Chase gets ready to eliminate Price Protection and Return Protection
Effective August 26, Chase will no longer offer Price Protection or Return Protection to its customers. Some customers were informed of the change over the weekend.
Price Protection is a beloved benefit that’s available across several card networks. In general, it promises to refund the difference in price between an item you buy and an advertised sale price that may pop up on that same item anytime between 60 and 90 days down the road.
Chase's competitor Citi announced just days ago that they'd be paring down their proprietary price protection program called Citi Price Rewind.
But Chase is going one step further than Citi did and axing its version of price protection completely.
Also being shut down at Chase is Return Protection, which makes it up to customers if they buy something they're unhappy with and the merchant refuses to take it back and refund their money. Chase currently offers up to $250 for each eligible item with a $1,000 annual maximum as part of its current return protection policy — but all you'll get is a big, fat goose egg come August 26!
Yet as Chase taketh away, the card issuer also giveth. Cardholders of select products such as the Chase Freedom Visa Platinum will have Trip Cancellation/Interruption Insurance added to their card on August 26.
Beginning on that date, the added coverage will provide reimbursement of up to $1,500 per person and $6,000 per trip for pre-paid, non-refundable passenger fares. To meet the criteria to get the money, your trip must be canceled or cut short by sickness, severe weather or other covered situations.
Money expert Clark Howard has long recommended trip insurance for cruises and for when you're going to be touring or traveling on a trip that requires prepayment of thousands of dollars.
So on the plus side, Chase’s addition of cancellation/interruption insurance for some customers could negate the need for them to buy third-party trip insurance. Just be sure you read through Chase’s policy carefully to see what it covers and what it excludes before deciding to forego traditional trip insurance you might buy elsewhere.
More credit card stories on Clark.com:
- Clark Howard: Here's my philosophy on credit cards
- How to improve your credit score by 100 points in 30 days
- Review: The Chase Freedom® credit card