Best Credit Cards with Fraud Protection and Purchase Insurance
When it comes to credit cards, it’s not just about the rewards points or the cashback (although those are great too!). One of the most important features you should look for is solid fraud protection and purchase insurance. These two features can save you from a lot of headaches and financial strain if something goes wrong with your purchases. Whether you’re dealing with a fraudulent charge or need to return a damaged item, the right credit card can offer peace of mind that goes beyond just making transactions.
In this article, we’re going to dive into the best credit cards with fraud protection and purchase insurance. But don’t worry, we’ll keep it simple and easy to understand. We know it can be a little overwhelming trying to figure out which credit card has the best benefits, so we’ll break it down for you. By the end, you’ll be able to choose a credit card that suits your needs and gives you a little extra protection in case something goes wrong.
What is Fraud Protection and Purchase Insurance?
Before we start listing the best credit cards, let’s first understand what fraud protection and purchase insurance actually mean.
Fraud Protection:
Fraud protection is basically a safeguard against unauthorized charges made on your credit card. If someone steals your credit card information and uses it to make purchases, fraud protection helps ensure that you won’t be responsible for those charges. Most credit cards today offer some level of fraud protection, but the quality can vary. This protection also often includes things like monitoring for suspicious activity and alerting you if something seems off.
Purchase Insurance:
Purchase insurance (also known as purchase protection) is a benefit that covers purchases you’ve made with your credit card in case something goes wrong. This could be anything from a damaged item to a defective product or even theft. If the item you bought doesn’t live up to expectations or gets damaged within a certain time frame, you might be able to get your money back or a replacement thanks to purchase insurance.
Together, these features are like a safety net that can help you avoid losing money or being stuck with faulty products. Let’s take a look at the credit cards that offer these important benefits.
1. Chase Sapphire Preferred® Card
If you’re into travel or dining out, the Chase Sapphire Preferred® Card could be your new best friend. Not only does it offer amazing rewards (like 2x points on travel and dining), but it also comes with some seriously strong fraud protection and purchase insurance features.
Fraud Protection:
Chase provides 24/7 fraud monitoring, so if there’s any suspicious activity on your account, you’ll be notified right away. You’re not liable for unauthorized purchases as long as you report them in a timely manner, making this a great card for peace of mind when shopping online or traveling abroad.
Purchase Insurance:
One of the standout features of the Chase Sapphire Preferred® Card is its purchase protection. It covers new purchases against damage or theft for up to 120 days (up to $500 per claim and $50,000 per year). If your new laptop or smartphone gets damaged or stolen within that time, Chase could reimburse you for the cost of the item. Plus, it also offers extended warranty protection, so if your item’s manufacturer warranty is about to expire, you could get extra coverage.
2. Citi® Double Cash Card
The Citi® Double Cash Card is a favorite among credit card users, mainly for its straightforward rewards program. You earn 1% cash back when you make a purchase and another 1% when you pay it off, which makes it a solid choice for everyday spending. But that’s not all—it’s also a top contender when it comes to fraud protection and purchase insurance.
Fraud Protection:
Citi offers excellent fraud protection services, including real-time alerts and zero liability for fraudulent charges. Citi’s 24/7 fraud monitoring helps catch suspicious activity, and if your card is lost or stolen, they’ll work quickly to resolve the issue and issue you a new card.
Purchase Insurance:
Citi’s purchase protection covers new purchases for 120 days (up to $1,000 per claim and $50,000 per year). If your item is damaged or stolen within that time frame, Citi will reimburse you. This card also offers extended warranty protection, which can extend the manufacturer’s warranty on eligible purchases by up to 24 months.
3. American Express® Gold Card
The American Express® Gold Card is another strong choice, particularly for those who love dining out. With 4x points on restaurants worldwide and 3x points on flights booked directly with airlines, it’s a great option for those who like to rack up rewards. But it also has a lot to offer when it comes to fraud protection and purchase insurance.
Fraud Protection:
American Express has some of the best fraud protection features out there. They offer real-time fraud alerts and a robust system for monitoring your account for suspicious activity. If fraudulent charges are made, American Express typically takes care of them, and you won’t be responsible for paying them. Plus, their customer service is known for being quick to resolve issues.
Purchase Insurance:
The American Express® Gold Card comes with purchase protection that covers new purchases for up to 90 days. If the item you buy is damaged or stolen, you can file a claim for reimbursement. While the coverage isn’t as long as some other cards, it’s still a solid safety net for big-ticket items.
4. Discover it® Cash Back
If you’re looking for a no-annual-fee card with a great rewards program and solid fraud protection, the Discover it® Cash Back card might be just what you need. With 5% cash back in rotating categories (like grocery stores, restaurants, and Amazon.com) and 1% on all other purchases, it’s a good option for those who want to earn rewards while protecting their purchases.
Fraud Protection:
Discover offers 24/7 fraud monitoring and will alert you if any suspicious activity is detected on your account. You also have zero liability for unauthorized purchases, so you can shop with confidence. If your card is lost or stolen, Discover will quickly send you a replacement and investigate any fraudulent charges.
Purchase Insurance:
Discover’s purchase protection covers new purchases for 90 days (up to $500 per claim). If something is damaged or stolen within that time, you could be reimbursed for the cost of the item. It’s not as long as some other cards, but it’s still a great option for protection on everyday purchases.
5. Wells Fargo Propel American Express® Card
For a no-annual-fee card with solid rewards and great protection, the Wells Fargo Propel American Express® Card is a top choice. You’ll earn 3x points on travel, dining, and streaming services, plus 1x points on other purchases. But it’s the fraud protection and purchase insurance that really make this card stand out.
Fraud Protection:
Wells Fargo offers great fraud protection, including real-time alerts and a zero-liability policy for unauthorized transactions. If your card is lost or stolen, Wells Fargo will quickly freeze your account and send you a new card. You’ll also be protected from any fraudulent charges once they’re reported.
Purchase Insurance:
The Wells Fargo Propel American Express® Card includes purchase protection for new purchases against theft or damage for up to 90 days. This covers up to $1,000 per claim, making it a good choice for larger purchases. The card also includes extended warranty coverage, adding an extra layer of protection to your purchases.
6. Chase Freedom Unlimited®
The Chase Freedom Unlimited® is a simple and effective credit card that’s great for everyday purchases. It offers 1.5% cashback on all purchases, which is a great perk if you don’t want to worry about rotating categories or special spending requirements. And when it comes to fraud protection and purchase insurance, this card delivers too.
Fraud Protection:
Chase provides 24/7 fraud monitoring, so you’re always covered if something suspicious pops up on your account. They also have a zero liability policy, meaning you won’t be held responsible for unauthorized charges if you report them right away.
Purchase Insurance:
The Chase Freedom Unlimited® offers purchase protection for 120 days (up to $500 per claim and $50,000 per year). This can help you get reimbursed if an item is damaged or stolen, and it also includes extended warranty coverage.
How to Choose the Right Credit Card for Fraud Protection and Purchase Insurance
Now that you know about some of the top credit cards with fraud protection and purchase insurance, it’s time to think about which one is right for you. Here are a few things to consider:
- Annual Fees:
Some cards, like the Chase Sapphire Preferred® Card or the American Express® Gold Card, come with annual fees. If you don’t mind paying a fee for extra benefits, these cards are great options. However, if you prefer a no-annual-fee card, the Citi® Double Cash Card or Discover it® Cash Back might be better choices. - Rewards and Benefits:
Think about your spending habits. Do you spend a lot on travel, dining, or groceries? If so, cards like the Chase Sapphire Preferred® or American Express® Gold Card might give you more value. If you prefer a simpler rewards structure, the Citi® Double Cash Card or Wells Fargo Propel American Express® Card are great alternatives. - Protection Coverage:
Look at the details of the fraud protection and purchase insurance. Some cards offer longer purchase protection periods (like 120 days), while others may offer more coverage per claim (like $1,000 instead of $500). Make sure the card you choose has the right coverage for your needs.
Final Thoughts
When it comes to credit cards with fraud protection and purchase insurance, it’s all about finding a card that gives you the peace of mind you deserve. Whether you’re looking for a travel rewards card, a cash back card, or a simple all-around option, the right credit card can offer you protection against fraud and help you safeguard your purchases. Be sure to consider your personal spending habits, the coverage provided, and any fees before making your decision.
With the right card in hand, you can shop confidently knowing that you’re protected against fraud and that your purchases are covered in case something goes wrong. Safe shopping!
