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MANY credit cards offer what sounds like added incentives but are they selling you something you already have?

This guide compares consumer protection under law with the added extras credit card providers like to advertise.

Section 75

Section 75 of the Consumer Credit Act 1974 is the gold standard in consumer purchase protection.

It makes card providers equally liable (with the supplier) under law for any goods between £100 and £30,000, that you've paid for by credit card or store card.

That means, by law, you're entitled to claim back the full cost of goods or services that have not been supplied or are faulty from your credit card provider.

You can even claim back extra costs incurred as a result of the problem.

For more on how section 75 works and what's covered see more in our full Section 75 guide.

On the face of things the level of cover that Section 75 provides seems pretty hard to beat, so do these 'extras' from the credit card companies give you anything more?

Purchase Protection Insurance

Many credit cards, especially premium cards, offer purchase protection insurance at no extra cost.

This offers more protection than section 75 because it covers goods paid for with the card against loss, theft or accidental damage, usually for around three months after purchase.

American Express

Small print: Protection against theft and accidental damage for up to 90 days after purchase. Excludes theft of electronics. £50 excess applies. Limited to £2,500 per claim and £20,000 in claims a year. Exclusions and terms apply.

Capital One

Small print: Protection against loss, theft and accidental damage for up to 100 days after purchase. Excludes delivered purchases whilst in transit. £25 excess applies. Claims limited to £1,000 per item and £20,000 a year. Exclusions and terms apply.

Post Office

Small print: Protection against loss, theft and accidental damage for up to 90 days after purchase. Exclusions and terms apply.

As you would expect from any insurance policy, there are limitations on the cover and exclusions with all of the above - and so it's important to check the full policy details before ever relying on it.

Limitations tend to be on item cost (maximum claim amounts as well as maximum annual claim amounts), and it's common that, for example, second-hand goods aren't covered.

Other commonly excluded items include perishables, vehicles (and items left in them), jewellery and electronics.

Chargeback

Visa and Mastercard operate a system called chargeback.

Like Section 75, the scheme protects cardholders when goods don't arrive, arrive damaged, faulty or not as described or don't arrive at all because the retailer has gone bust.

But it's not just a copy of consumer legislation. In addition chargeback covers: goods or services costing under £100 and goods or services paid for with a Visa or Mastercard debit card.

Chargebacks are subject to some rules. For example, Visa claims must be made within 120 days of realising there's been a problem (180 for international purchases).

Ok. So now we've seen some extra consumer protection worth getting on board with, here are some that aren't so useful.

Purchase Delivery Protection

All Barclaycard credit cards offer purchase delivery protection.

It offers refunds if any new items bought with the card which should be delivered directly to your front door don't arrive. However, it excludes purchases made from websites or suppliers outside the UK as well as antique or second-hand goods.

In all instances, Barclaycard's purchase delivery protection refunds will not exceed your credit limit or amount charged to your Barclaycard and will never exceed more than £5,000.

As they say, "you do the math!" Barclaycard's purchase delivery protection offers a whole lot less than you'll already get under Section 75.

Refund Protection Insurance

In a similar vein many American Express credit cards offer refund protection insurance.

It covers items costing £25 to £200 up to a maximum of £750 in a 12 month period if you want to take it back but the merchant won't give you a refund.

Not only are many items you cannot take back likely to be covered under section 75 in any case, AmEx include a lengthy list of typically refund-exempt exclusions which includes jewellery, books, sale items, art and unique items, perishables, tickets, services and "items permanently affixed to home, office or vehicles" among others.

The policy is also restricted to the UK - something Section 75 isn't.

In short, it could be useful but it probably won't be.

All in all

Credit card companies bandy 'offers', 'incentives' and 'extras' about like a carrot in front of a donkey. And many times they're just not worth writing home about. To recap:

• Section 75: Great
• Chargeback: Very handy
• Purchase protection insurance: Good
• Refund Protection Insurance: Don't get too excited
• Purchase Delivery Protection: You're already covered!

Please note we can only provide general information and cannot answer questions about specific cases in the comments, sorry.

If you need specific help or information on your rights an advice agency such as Citizen's Advice or Consumer Direct would be able to respond directly and give you more in-depth information.

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