Find everything you need to know about credit card extended warranty, a perk offer to cardholders!
Credit card extended warranty can be a valuable tool offered to cardholders, that allows you to safeguard your purchases against unexpected breakdowns after the manufacturer’s warranty expires. But do you know how it actually works?
Well, that’s what we are going to talk about! Understand what it is, how it works, what it covers, and the filing process to claim, so you can make the most out of this benefit. Also, if you want to check out more financial tips on our website, you can click on this link!
What Is Credit Card Extended Warranty?
It is a feature that lengthens the manufacturer’s warranty on certain eligible purchases made with your card. This extended coverage typically kicks in after the original warranty expires, offering additional protection against product breakdowns or malfunctions. This additional coverage can differ between them credit card networks, such as Visa or Mastercard.
How Does It Work?
If your credit card offers this perk and you used it to pay for an item that it covers, whenever the manufacturer’s warranty expires and the item experiences breakdowns or malfunctions, you can file a claim to get this extended coverage to kick in. Then, the issuer or administrator will review your claim and determine if it falls under the terms of their program. If approved, they might offer repair services, replacement of the item, or reimbursement for the purchase price.
How to File an Extended Warranty Claim
The process will vary depending on your issuer. However, here’s a general guideline:
- Gather Documentation: collect your purchase receipt, proof of purchase from your credit card statement, and any communication you’ve had with the manufacturer regarding the malfunction;
- Contact Your Issuer: locate the contact information for your credit card issuer’s extended warranty program. This might be a dedicated phone number, online claims portal, or a designated third-party administrator;
- File Your Claim: when contacting your issuer or administrator, be prepared to provide details about your claim, including:
- The product experiencing the malfunction;
- A description of the issue;
- The date of purchase;
- The original manufacturer’s warranty details (if any);
- They might also ask you to submit photos or videos documenting the damage.
- Claim Review: the issuer or administrator will review your claim and determine if it falls under the program’s coverage. This process might take some time, so be patient;
- Claim Resolution: if your claim is approved, you’ll be notified of the next steps. This could involve:
- Repair: the issuer or administrator might arrange for repairs at an authorized service center;
- Replacement: you might receive a replacement of the same or similar model for the covered item;
- Reimbursement: in some cases, you might be reimbursed for the original purchase price of the item, minus any applicable deductible.
CHECK OUT VISA’S EXTENDED WARRANTY
CHECK OUT MASTERCARD’S EXTENDED WARRANTY
What Does a Credit Card Extended Warranty Cover?
The coverage offered by credit card extended warranty programs can vary, but it usually protects items purchased with an eligible card against breakdowns or malfunctions due to defects in materials or workmanship that occur after the manufacturer’s warranty expires. Typical items that might be covered include:
- Appliances;
- Televisions;
- Cell phones.
However, eligibility can vary for each product. There may be restrictions on the maximum price of items that qualify, as well as limits on the number of covered purchases. For instance, extended warranties might cover up to $10,000 per claim and $50,000 per cardholder annually. Additionally, if a purchase was only partially paid for with the credit card, the extended warranty might only cover the amount charged to the card. It’s crucial to remember that it typically doesn’t cover:
- Normal Wear and Tear: extended warranties don’t protect against everyday wear and tear that naturally occurs over time;
- Accidental Damage: dropping your phone or spilling liquids on your laptop usually aren’t covered by it;
- Cosmetic Issues: scratches, dents, or other cosmetic blemishes typically aren’t covered;
- Manufacturer Recalls: if your product is subject to a manufacturer recall, you should deal directly with the manufacturer for repairs or replacements.