Credit Card Companies: Blame Bots For The Loss of Price Protection

Many of the major credit card companies, over the last few years, have offered a number of benefits including price protection—meaning customers could file a claim against something they bought if they find a cheaper price somewhere else. Those days appear to be over.

Once upon a time, major credit card companies like Chase and Citi provided their cardholders with a unique perk: price protection. That meant that if a customer made a purchase but then saw the same item for a cheaper price within a few months, they could file a claim and be reimbursed up to a few hundred dollars. It was a lot of work, though, because the purchaser had to actually monitor prices, then compile all the evidence and submit a claim, then follow up until the refund arrived. It was so much work, in fact, that hardly anyone actually did it.

But that’s changed. Thanks to technology, we now have apps and programs that monitor prices and will apply for a refund for you if you’ve already purchased something. Since these bots appeared, the number of claims has skyrocketed.

“Over time, the growth appears to be explosive,” one anonymous credit card executive told Business Insider. “Just a couple years ago it wasn’t like this. The sheer number and volume of claims that are popping up all over the industry, they’re unheard of.”

As a result, many credit card companies are pulling or altering the price protection perk. Chase is removing it completely, while Citi has made a choice to cap refund amounts at $200 per claim and $1,000 annually—less than half of what its been.