Credit Card Refund Protection

Shop with confidence using a credit card with an added layer of protection to refund you if the retailer won’t. Compare and apply online.

14 reviews
0% p.a. on balances transferred for 22 months, with a 2% balance transfer fee.
Annual fee refunded – a potential saving of $129 a year (conditions apply)
Earn 2 pts per $1 spent on overseas purchases.
Comes with Apple Pay.

If your credit card offers refund protection, your credit card provider may take responsibility for refund requests rejected by the retailer. In this case, if a retailer refuses to give you a refund after you purchase an item and try to return it to them in new and non-faulty condition within 90 days, you can go to your card provider and claim a refund from them instead. This is, of course, only possible if you used their credit card to purchase the item.

Conditions apply

Credit card refund protection comes with some restrictions. The exact restrictions vary depending on the provider you are dealing with but there are some that are fairly universal.

The cover only applies to items regarded as eligible. This typically rules out items like precious stones, jewellery, antiques, artworks, furs, event or travel tickets, mobile phones, computer software and perishable goods. There are even more exclusions. Read the policy terms and conditions if unsure.

The refunds will also have specific upper and lower limits. Some providers will only offer a maximum of $2,000 worth of refunds to a particular customer over the course of the year and will only pay up to $500 for individual items. Many of them will also not offer refunds on products priced below $50. In this case, you would get only a $500 refund for an item costing, say, $1,000, and no refund at all on an item priced at $45.

Refund protection differs from purchase protection

While very few card issuers (notably American Express) offer refund protection, a large number of providers offer purchase protection. Purchase protection covers against theft or accidental damage, whilst refund protection covers against rejected refund claims. Refund protection could be regarded as an extended form of purchase protection.

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Receive 50,000 points when you apply online, are approved and spend $1,500 on your card within the first 3 months. Conditions apply.
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Q&As about Refund Protection from customers

Q: How do I compare refund protection cards?

When choosing credit cards with refund protection, you need to compare them carefully to ensure good value. Important factors to use in the comparison include:

  • Annual fee: Cards with complimentary benefits like refund protection typically come with an annual fee. Compare the fee with other cards’ fees to make sure that you are getting value for money.
  • Interest rates: This is the main factor for many cards, especially if you expect to run an overdue balance on a regular basis.
  • Interest-free days: If you usually pay off your balance in full and on time, thus avoiding interest charges, compare the number of interest-free days offered per month.
  • Rewards program: Some cards that come with refund protection are connected to a rewards program. With such cards, you will get refund protection on purchases made, as well as earning points for making those purchases.
  • Other benefits: Check to see what other benefits, such as overseas travel insurance or free flights, are offered by a card with refund protection and competing cards. Other benefits may be far more useful to you than refund protection.
  • Cover provided: Read through the terms and conditions to understand the limits and restrictions on the refund protection. They may differ between providers, and if you make a purchase outside the card’s approved limits, you need to be aware of this at the outset.
Q: What are the advantages of cards with refund protection?

There are numerous pros and cons, as you would expect.

Advantages

  • Simple claims procedure: It’s relatively straightforward to make a claim. You need to provide your receipt for the purchase and fill out the claim form. Once your refund claim is approved, you should receive your refund fairly promptly.
  • An extra layer of security: You gain the security of being protected against failed refund claims. While many stores have a good return policy, refunds are not always honoured. If the items you bought were expensive, you could be left out of pocket if the store refuses your refund claim.

Disadvantages

  • Limitations: The main disadvantage with refund protection is that it is rarely all-inclusive. There is a limit on the amount of refund each cardholder can receive and there is also a limit on the type of product for which you can claim a refund. If you are buying an expensive item, or one of the ineligible items, you may not be able to get full cover.
  • You get what you pay for. Although credit cards promote their ‘complimentary’ benefits, you will often find yourself actually paying for these privileges in the form of a higher annual fee. Check to see that you are actually likely to use any benefits that you are effectively paying for.
Q: How do I know if my credit card has refund protection cover?

Refund protection cover is normally only one of a suite of insurance policies applicable to a specific credit card. You will normally have been provided with the terms and conditions of the policies when you first received your new card. Failing this, you can normally find a link to the insurance terms and conditions on the card’s web page.

Q: How much does refund protection cover cost?

You won’t see an additional fee on your credit card for refund protection. Refund protection cover is usually listed as a complimentary benefit. However, the cost of providing this cover is built into the total cost of the card, and unless the card has no annual fee, the cardholder will be defraying the card issuer’s costs to some extent.

Q: How do I make a claim for a refund?

You will need to fill out a claim form and provide a copy of the invoice and/or receipt for the item, showing that it was purchased using the credit card offering the refund protection cover. Under certain circumstances you may be asked to provide the item itself.

Q: What happens if I don’t have the receipt?

Some card providers (or their insurance underwriters) may be prepared to accept your credit card statement as proof of purchase, but you will be on shaky ground. It’s always best to retain the receipt for individual items over $50.

Q: Can I claim a refund for a damaged, used or faulty item?

These situations are outside the scope of credit card refund protection. It is only meant to cover the return of new, undamaged items in perfect working order. If your item is damaged or faulty on arrival, you should normally be able to insist that the retailer accepts a return, under the provisions of consumer law. Items accidentally damaged after you have owned them for less than 90 days may be covered by a separate credit card purchase protection policy. Items which prove to be faulty after being used for a while may be covered by the manufacturer’s warranty.

Q: Can I claim a refund from my card issuer first, instead of going to the retailer?

No. Where the retailer has an established returns policy which is the same or better than the benefit provided by the credit card, you must first try to get your refund from the retailer.

Q: What if my card provider refuses my refund protection claim?

Read your card’s terms and conditions for details of the dispute resolution process.

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