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Barclays has announced it will be cutting a series of valuable purchase protections on popular rewards credit cards. This follows Citi’s cut of similar benefits, which went into effect Sept. 22, 2019. Below is an overview of what’s changing and which credit cards you should consider switching to if these benefits are important to you.
Recently, Barclays began notifying some cardholders that their extended warranty and price protection would be removed on Nov. 1, 2019. While Barclays is doing away with these benefits, they appear to be adding roadside dispatch to select credit cards. That’s not exactly a fair trade-off, but at least it’s not all bad news.
In the notice sent to cardholders, Barclays instructs them to check the Rewards and Benefits section of the website “on or after” Oct. 1, 2019, to see a finalized list of benefits being discontinued (and added). Could the company be testing out cardholder reactions before they set these changes in stone? We’ll find out soon enough.
» Learn more: Your credit card’s extended warranty policy: A guide
How big of a deal is this?
The loss of extended warranty and price protection is unfortunate, but it’s not quite as bad as Citi stripping its cards of most travel and purchase protections. While extended warranty and price protection are valuable benefits that can help you save money, when is the last time you made use of these benefits? If the answer is never, then it’ll likely business as usual for you.
But if the loss of these benefits on your Barclays credit card will impact you, consider using a different card that still protects your purchases.
How to get these benefits back
If you’re ready to switch cards — even if it’s only for major transactions you want to be protected — you still have plenty of options. There are several credit cards that offer purchase and warranty benefits (at least for now). Below are some of our picks:
Chase Sapphire Reserve®
The Chase Sapphire Reserve® offers purchase protection, extended warranty and return protection. The coverage limits are pretty good: Purchase protection covers provides up to $10,000 in coverage per damage or theft claim (up to $50,000 per year) within 120 days of purchase. Meanwhile, the card’s extended warranty benefit adds a year to U.S. manufacturers' warranties of three years or less.
Return protection covers items that merchants refuse to take back within 90 days of purchase. You can get up to $500 per item ($1,000 per year). There are exclusions, so be sure to read the terms before filing a claim.
United Club℠ Card
The United Club℠ Card from Chase offers the same purchase protection and extended warranty as the Chase Sapphire Reserve®. However, the United Club℠ Card has one notable addition: Price protection. This benefit gets you up to $500 in coverage per item ($2,500 per year).
If you use your card to purchase an item that drops in price within 90 days, you can submit a claim to receive the difference back. Keep in mind that this benefit applies only to purchases made in the U.S. and that the price drop must be advertised in print or online.
The Platinum Card® from American Express
While American Express offers purchase protection and extended warranty on most of its cards, the amount of coverage varies. The Platinum Card® from American Express, for example, offers $10,000 in purchase protection per occurrence or $50,000 per calendar year. The coverage is valid for up to 120 days after purchase for most cardholders, with some residential restrictions. Terms apply.
The extended warranty benefit on this card matches the original U.S. manufacturer’s warranty for up to two additional years. If you’re looking for more peace of mind, The Platinum Card® from American Express also includes return protection. Cardholders can receive up to $300 per item ($1,000 per calendar year) if a merchant refuses to take an item back within 90 days of purchase. Terms apply.
» Learn more: American Express Platinum review: Luxury isn’t cheap
While Barclays rolling back extended warranty and purchase protection may sound like bad news on the surface, there are ways around it. Lots of other credit cards offer these benefits to cardholders — you may already have one of them in your pocket.
The information related to the United Club℠ Card has been collected by NerdWallet and has not been reviewed or provided by the issuer of this card.
How to Maximize Your Rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2020, including those best for:
Airline miles and a large bonus: Chase Sapphire Preferred® Card
No annual fee: Wells Fargo Propel American Express® card
Flat-rate rewards with no annual fee: Bank of America® Travel Rewards Visa® credit card
Premium travel rewards: Chase Sapphire Reserve®
Luxury perks: The Platinum Card® from American Express
Business travelers: Ink Business Preferred℠ Credit Card
Planning a trip? Check out these articles for more inspiration and advice: Find the best travel credit card for you Purchase protection: Which credit cards cover your belongings? Your credit card’s extended warranty policy: A guide