This guide tells you all about credit card purchase and price security. In this guide, we explain the concepts of security of purchase and price, compare security and give examples of their use. It is good to note that in addition to buying and price protection, credit cards can offer many other benefits such as travel insurance and reward points.

Credit Card Purchase Security

Credit Card Purchase Security

A debit card can be a good payment instrument for casual shopping, but online shopping or making a larger purchase is a safer choice. Credit card purchase or product security replaces products purchased with a credit card for, for example, theft, breakage, or loss. Therefore, if the item is not delivered, faulty, or completely wrong, you may be able to claim compensation from the credit card company for failed transactions. The terms and amounts of the refund will depend on the credit card issuer, so you should check with your bank about the card’s product security terms, which are different for each credit card.

How do product security differ?

There are major differences between the purchase and product security policies of credit cards, for example, not all cover products against theft or loss.

Amount of deductible

Amount of deductible

There are differences in deductibles, while a card may include product liability insurance without a deductible, the deductible on another card can reach up to 75 euros. On average, the deductible for credit card purchases is around EUR 40.

Total Limitations and Validity of Compensation

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There are considerable differences in the overall limits of purchase insurance. For example, Good Finance World Elite MasterCard covers 3 losses a year without a euro limit, while Handelsbanken MasterCard will reimburse “only” € 5,000 for the duration of the card.

There are also differences in insurance policies. At best, card product security can insure your purchase (depending on warranty) for up to 4.5 years, but in most cases, however, Purchase Security varies between 90 and 180 days.

Country restrictions

Country restrictions

Some cards restrict purchase cover to products purchased in the Nordic region or require that the product be located in the Nordic region. This is the case, for example, with the Bank of Good Finances MasterCard Private Banking Gold credit card, which offers security of EUR 12,000, but is only valid in the Nordic countries.

Some cards, on the other hand, do not specify any restrictions regarding the location of the product or the place of purchase.

Pet damage

If you have pets in your home, you might want to check if your credit card is a replacement for pet protection or product security for pet damage. Credit cards generally do not cover pet damage, such as damage to property and property, but there are exceptions: all E-money credit cards compensate for pet damage.

E-money offers purchase protection for its two credit cards: E-money Credit and Gold. For a credit card, a customer can choose a credit line between € 1,000 and € 5,000. The credit limit for Gold is between EUR 2,000 and EUR 10,000, and the card includes travel insurance. Cards can also be combined with the Debit feature.

If you know there is a high risk of destruction of your dog or cat’s belongings, you can buy risky furniture and items on the credit side of the card. It is also worth bearing in mind that the deductible for credit card purchase is lower than for large home insurance.