A guaranteed pricing scheme can help you get the cheapest price for items you buy with your credit card by covering the difference if you see it advertised for a lower amount elsewhere. Also known as price protection or a price guarantee, it's often available on credit cards that offer other types of complimentary insurance policies.
Requirements to use this cover usually include the period between where you bought the item and where you see it at a cheaper price, the value of the price difference and what kind of purchase it is.
If you have a credit card that offers some form of price guarantee, the cover will automatically be available to any eligible items you pay for with the card. As with any insurance, you need to meet some key conditions to make a claim. This normally includes:
As long as you meet the requirements for cover, normally you can get a maximum price protection refund of $300 and $500. Most credit card insurance policies have a limit on how much you can get back from guaranteed pricing scheme claims over a year, such as $100,000.
To put this in perspective, here are some examples of when you could or couldn't use price protection cover:
Example 1: You buy a dress for $2,000 with your credit card and later that week see another local store advertising it for $1,800. If your credit card offered a price guarantee scheme, you could claim the $200 price difference.
Example 2: A few days after buying a TV for $3,000, you see another store holding a huge sale where the exact same TV is priced at $2,000. Based on most complimentary credit card insurance policies, you might not be able to claim the full $1,000 difference due to claim limits. But making a claim could give you a way to save up to $500 compared to what you originally paid.
Example 3: You buy a new watch for $200 then see another store selling it for $150 two weeks later. In this scenario, it's unlikely you'd be eligible for price protection cover as the price difference is only $50.
You'll need to follow the claim process that's outlined in your credit card's insurance policy booklet. But in general, you'll need to apply online or by phone and include things such as the receipt for the item purchased and the catalogue or a photo showing it at a cheaper price nearby.
Guaranteed pricing schemes typically cover physical items you've bought with your credit card in-store in Australia. For example, a TV, laptop, jewellery, shoes or suitcase. Some policies also cover household furniture. But most policies won't cover software, food or secondhand items.
The bank or brand's website includes links to the complimentary insurance policy. This document typically includes details for all the insurance available. So if a card offers price protection cover and travel insurance, they'll usually be included in the same insurance policy document.
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