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.
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.
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