Chase Credit Card Benefits

[DRILLINDK]

I just received a pamphlet in the mail detailing the benefits I receive with my Chase Freedom Credit Card. I'm happily astounded to find out that I may have such benefits as:

1. Auto Rental Collision Damage
2. Purchase Protection
3. Extended Warranty Protection
4. Price Protection
5. Return Purchase Protection
6. Travel & Emergency Assistance Services
7. Roadside Assistance

Does anyone have any experience with this stuff or can enlighten me more on theses services? This sounds like a pretty good deal, but as always I'm skeptical and want to know what the catch is???

[disneysteve]

I don't think there's any "catch". You just need to look at the actual terms of each item. Nothing on that list is anything new or different. These are all credit card benefits that have been around for years.

[DRILLINDK]

I'm impressed. One of them was purchase reimbursement. If a merchant refuses to accept a return after ~30days you can receive a refund from the CC company for the cost of the item.

[ua_guy]

There really isn't a catch or a trick. It costs merchants money to accept your credit card, typically between 1-3% of the purchase. Issuing banks want you to use their card (versus cash/check) because they make money when you do. In return, they play a competitive shell game between each other by providing benefits and perks/rewards to entice you to use their cards or join their programs. So, while the benefits appear "free", they're really not. It's all built into the costs of goods and services where merchants accept credit cards.

If you've ever wondered why American Express still isn't accepted everywhere, it's because they typically charge the highest fee per transaction and have the most stringent contracts with merchants.

You really need to read the terms of the benefits. For example, rental car insurance coverage is generally secondary/supplemental up to a minimum limit. Roadside assistance doesn't mean a free tow, or maybe it does, but within a really low mileage radius. They're good benefits, but not exactly iron-clad. The hardest part about using them is remembering to do so.