Spotlight on safety: How card issuers are protecting customers
When you think "safety," your first thought probably involves physical wellbeing. In fact, last week's spotlight on safety as part of Airlines Week for the 2020 TPG Awards highlighted how carriers are keeping customers physically safe during the coronavirus pandemic.
But financial safety is also important. One of the reasons we advocate putting spending on a credit card — aside from the rewards you can earn and perks you can receive — are the protections that come with using a credit card over cash or debit.
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Today, I'm going to walk through the ways using a credit card — during the pandemic and when things are more "normal" — can help protect you financially.
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Fraud detection services
Thanks to legislation such as the Fair Credit Billing Act and the CARD Act of 2009, consumers are entitled to certain rights and protections when they use their card. Notably, the Fair Credit Billing Act protects cardholders from being on the hook for fraudulent purchases and gives cardholders avenues for disputing incorrect charges.
However, credit card issuers have gone beyond the minimum requirements in recent years, making it easier than ever to monitor and report for fraudulent behavior to protect yourself and your finances. Most issuers and payment networks use artificial intelligence (AI) to help catch fraud early. But if you lose your card or believe you may be the victim of fraud, issuers have also made it easier in recent years to report fraud and put temporary freezes on your cards to prevent further damage.
For example, Amex lets primary cardholders and authorized users freeze an account. While you won't be able to use the card on new purchases (helping to stop potential fraud), recurring payments such as autopay bills will still go through. This helps protect you without forcing you to change out half a dozen autopay credit cards across other accounts.
Related: Credit cards that offer a pause button and when to use it
Travel and purchase protections
Another way using a credit card can help protect you financially is through travel and/or purchase protections that many rewards credit cards offer to cardholders.
Travel protections — such as trip cancellation and interruption insurance — can help save you hundreds or even thousands of dollars if something goes wrong during your travels. There are restrictions on what is covered or not covered (fear of traveling due to COVID-19 is not a covered reason under trip insurance, for example), but in many cases, using a card with travel protections like this can offer peace of mind and potentially really save you if the worst-case scenario happens while you're traveling.
Chase's Sapphire credit cards take the cake when it comes to these protections, offering an impressive lineup that includes travel accident insurance, trip cancellation and interruption insurance, baggage delay insurance, primary rental car insurance and more. But Amex has stepped it up recently, adding more travel protections across many cards at the beginning of 2020.
Related: Best cards with travel insurance
Additionally, some cards come with purchase protections that cover you if an item is lost, stolen, or damaged. As you start holiday shopping for friends and family (or even taking advantage of deals for yourself), knowing you're covered can especially be a lifesaver for online purchases that are shipped to you.
Going contactless
Contactless credit card technology actually helps keep you financially and physically safe. While this payment option has been slower to catch on in the U.S., the 2020 coronavirus pandemic has accelerated its adoption.
Like EMV technology, contactless payments with mobile wallets or your tap-to-pay credit cards adds an extra layer of security when you pay with something called tokenization. When you pay with a contactless credit card, each transaction is initiated through a token. This way card readers only have access to a one-time token rather than your actual credit card number and details.
Contactless technology also provides a way for you to potentially limit your risk of contracting COVID-19 while you are out and about. By going contactless at your favorite merchants, you eliminate a touchpoint in the payment process. And the fewer touchpoints you interact with, the less likely you are to transmit or contract the disease.
Related: 6 ways to pay without touching anything
Bottom line
Rewards and credit card benefits are two things we talk about a lot at TPG. In fact, our TPG Reader's Choice Awards are all geared toward highlighting which cards offer the best earning rates, redemption options and other benefits for cardholders across certain categories. But rewards aren't the only reason you should be using a credit card to pay.
Card issuers have come a long way over the years in providing additional safety protections for cardholders, and I'm excited to see how technological innovations continue to improve safety measures for cardholders in the future.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.