Price protection definition
In short, price protection is when you make a qualifying purchase with your card and find the same product advertised at a lower price within 60 days of purchase.
After filing a claim you’ll receive the difference straight back into your account. In most cases, you’ll be subject to a calendar year maximum of $1,000 per account. Certain conditions and exclusions apply. The biggest exceptions to look out for are:
- Computers and most electronics
- Vehicles (e.g. cars, riding lawn mowers, motorcycles, RVs, etc.)
- Jewellery
In general, price protection is best used for appliances and furniture. Just keep in mind that another common exclusion is anything second hand.
We’ll get into even more detail on exclusions later in this article.
How to make a claim
Making a claim is pretty easy, but it’s important to move quickly as soon as you discover a lower advertised price. You only have between 60 and 90 days to capitalize on your claim, after all.
To get started, call the number provided by your credit card company. The administrator will then send you a request form, also called a claim form. From here you’ll need to provide three things:
- A customer and merchant copy of your sales receipt
- A copy of your credit card statement covering the transaction period
- A dated advertisement or flyer showing the lower sale price within the 60 to 90 day limit from the purchase date
At this point it’s up to the insurer to determine if they’ll pay you the difference or buy back the original item from you at the original price. Be prepared to wait up to a month to hear back.
Exclusions
In general, most retail items purchased in Canada are covered by credit card price protection on an applicable card.
With that being said, there are major exceptions — some of which we’ve already covered briefly above. Keep in mind that price protection only applies to items purchased with a credit card, not cash.
As a reminder, the big three types of purchase that are excluded are most electronics, vehicles and jewellery.
Aside from these, other exclusions include:
- Gift cards
- Fine art
- Pets or livestock
- Insurance
- Tickets (including airfare)
- Second hand items (including “floor model” deals)
- Anything purchased for a business rather than personal purpose
Another big thing to watch out for is double-dipping. Many stores offer price match policies where you can get a price difference refunded. Making an additional claim with a credit card to double your money, so to speak, won’t fly with your bank.
Finally, your price protection is tied to a credit card in good standing. If you’re maxed out constantly and don’t pay your bills, you’ll lose out on price protection, plus any other perks, benefits or rewards.
Which Canadian credit cards offer price protection?
Unfortunately, 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) and the MBNA Rewards World Elite® Mastercard®.
Of the two, MBNA’s Rewards World Elite® Mastercard® price protection goes further than CapOne’s Aspire card. 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.
Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.
The Toronto-Dominion Bank is the issuer of this credit card. MBNA is a division of The Toronto-Dominion Bank. ®MBNA and other-trademarks are the property of The Toronto-Dominion Bank.
How to exploit price protection
One of the best ways to find out if an item goes on sale is with a price-checking tool or app.
Plug whatever you bought into your price checker and let it work its magic. If you’re lucky you might be able to find that item at a steep discount, within that 60 day timeline anyway. Doing this periodically is a good way to capitalize on price protection.
Check out Shopbot.ca or PriceGrabber.ca to help you get started.
Conclusion
Price protection is an unbelievably powerful tool provided you’re willing to put in the effort.
It’s especially good for the holiday season or in the run up to big sale events. 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 — and without the lines.
The next time you see something that catches your eye, don’t stress over whether you’re getting the best price.
Buy it and take comfort in the fact that any deals in the next two months will be yours to enjoy.
