A new study suggests: Americans love credit cards, but lose millions by not using benefits

2018-07-10T05:42:09+00:00 February 27th, 2018|

When consumers don’t take advantage of the price protection benefits provided by major credit card issuers, millions of dollars are left unclaimed. At the end of this month, Discover has discontinued 5 of its major credit card benefits because they found that a majority of cardmembers are not interested in them.

The one benefit Discover did decide to keep? Price protection.

We weren’t surprised to hear this. When we started Earny to protect consumers from consistently overpaying and ease the hassle of claiming price adjustments, we found that many shoppers who didn’t already have a price protected card would quickly sign up for one.

SO, WHAT IS PRICE PROTECTION EXACTLY?

About 52% of credit cards offer a benefit of price protection that lasts up to 90-120 days.
This means if you make a purchase and then find the same product for a lower price later on, you can fill out some paperwork, submit your receipt to the credit card company and get refunded the difference between these two prices.

Earny automates price protection for 87% of all price-protected credit cards, covering Visa, Chase, Citibank and Mastercards for Bank of America, US Bank, Capital One, Barclays and First Premier Bank. Instead of you tracking price drops on your own, Earny monitors the prices of thousands of items at 35 major retailers and automatically submits claims on your behalf.

Hundreds of thousands of shoppers have received money back on their purchases through Earny. Some Earny shoppers have received more than $2,500 back in a year by taking advantage of Chase’s credit card price protection and more than $800 back in a single refund. Since we started, we’ve refunded shoppers about 6% of what they spend online, and we’ve seen an interesting shift in shopping behavior.

After cardholders of American Express and Discover (which don’t work with Earny currently) download the app, they ask us what card they should use to maximize their refunds. Once they learn about Chase and Citibank’s price protection benefits, about 40% of them switched to Chase and Citibank. People were applying for new credit cards so that they could get the most money back possible.

That got us thinking about what consumers know or don’t know about their credit card benefits. We conducted a survey to find out how people think about their credit cards and to see if they’re using them to their full advantage.

KEY FINDINGS

Play Your Cards Right

  • Benefits are a major factor people consider when choosing their credit card.
  • Out of the respondents who said yes to having card benefits, 70% chose their credit card based on benefits offered.
  • Of the people who chose their cards based on benefits, 90% have never filed a claim for price protection.
  • 43.1% did not know that their credit card had price protection benefits, yet 73% would apply to a credit card if they knew its price protection benefit could offer up to $2,500 back per year.
  • Discover is getting rid of most of their benefits starting February 28, but 87% of Discover card holders didn’t realize their benefits were going away. Luckily,
  • Discover is keeping price protection.
  • More than 50% of consumers choose their Top of Wallet card based on Earny’s coverage.

All In The Family

  • Parents aren’t saving as much as they could – 41% of parents did not know whether their card offered benefits and of those that did know, only 10.5% have ever submitted a claim to their credit card issuer.
  • 69.4% of parents do not notice when items they’ve already purchased dropped in price (however, parents notice adjustments more than non-parents).
  • Although more than half (55%) of parents who are Discover card users chose their card based on its rewards, only 5% knew that their Discover benefits were ending at the end of the month

And things to know about Earny…

After receiving a refund, shoppers are 3x more likely to purchase again from the same retailer. The item return rate decreases by 35%, and the following purchase is 2x faster than usual. Shoppers using Earny are spending less time before they make a purchase. 40% of Earny users change their Top of Wallet card to take advantage of price protection. 65% of online shoppers endure shopping abondonment, which is when consumers keeps items in their shopping carts and search for promo codes before making a purchase. Earny has decreased this waiting time among its users by 30%. Consumers are wasting less time making purchase decisions because they are confident confident that Earny will protect them after purchase.

This survey was conducted online through AYTM among 18+ adults located in the United States on February 9, 2018

SIGN UP HERE