How to Choose the Best Credit Card Based On Intangibles

Credit cards aren't just about fees, rates and rewards. Lots of other issues apply, and consumers should know about them.
By Brian O'Connell ,

If you've lost a credit card, had one stolen or even suffered the indignity of buying an item for one price, but seeing it priced lower the same week, don't worry - there's a card for all that.

CardHub reports this week that some 53% of consumer credit cards offer rebates to users who buy an item only to see its price drop a few days or weeks later. In addition, 88% of cards have a purchase protection policy, which allows cardholders to receive a refund or replacement if an item they buy gets accidentally damaged or stolen soon thereafter, the company tells MainStreet.

The credit card site calls these features "underutilized" by card consumer but states card customers should be aware of specialty credit cards that cover a lost card or that provide "price drop" protection.

"Thanks to budgets still feeling effects of the recession paired with intense retail competition, price-match guarantees are now somewhat of a staple during the holiday season and beyond," says Jill Gonzalez, an analyst at CardHub.

Most of the largest brick-and-mortar retailers - Walmart, Best Buy, Toys"R"Us, etc. - use price matching to avoid becoming showrooms for Internet giants like Amazon, Gonzales states.

"While consumers don't need to sign up for this service for any card issuer, they should be aware that filing a claim requires a copy of the original itemized sales receipt and a dated, printed advertisement with the reduced price for the identical item," she says. "Of the ten issuers we sampled, only American Express and U.S. Bank do not currently offer this benefit."

Most issuers, with the exception of USAA, also offer purchase protection, Gonzales notes. "While most issuers will insure an item up to $500, The Platinum Card from American Express and Citi Prestige Card provide coverage up to $10,000 - that's good to know if a big-ticket purchase is on your holiday shopping list," she says.

Paul Hartwick, a Chase Card Services spokesperson, says specific benefits do vary from card to card, but there are some intangibles you'd want on any card you get, especially cards used for travel and business.

For example, you'll want auto rental collision damage waiver on any travel or business card. "With Chase, coverage is provided for theft and collision damage for most cars in the U.S. and abroad," Hartwick says. "Coverage is 31 days in the U.S., and there are no foreign territory exclusions. Some credit cards offer this as primary or secondary coverage."

You'll also want trip cancellation insurance, travel accident insurance, baggage delay insurance and trip delay reimbursement, he says.

As for other credit card intangibles, Hartwick notes purchase protection is particularly important.

"That covers cardholders against theft or damage of items purchased using their credit card," Hartwick adds. On Chase cards, for example, the benefit is for items purchased within 120 days, and cardholders can file a notice within 90 days, he says.

Price protection card benefits are a big deal to Chase, too, and that's a win for consumers. "If a Chase credit card purchase in the U.S. is advertised for less in print or online within 90 days, a cardholder can be reimbursed the difference up to $500 per item, and $2,500 per year," he says. "Coverage includes online advertisements."

If you're still uncertain how to get the best deal on so-called intangibles with credit cards, ask around, whether you're a consumer or small business owner. "I like to ask the entrepreneurial communities that I am a part of what their experience has been with cards," says Clint White, president and co-creative director at WiT Media in New York City. "They're in the field using all kinds of cards, and their experiences, especially as articulated in real world situation, are more important to me than the cards websites."

"In the credit card world, having a human to help in intangible occasions is priceless."

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