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Came across this in my Discover Card Statement.

Sorry if it was already shared, but wanted to raise awareness for those who (like me) didn't know:

"Effective February 28, 2018, we will discontinue Extended Product Warranty, Return Guarantee, Purchase Protection, Auto Rental Insurance and Flight Accident Insurance due to low usage among cardmembers. This change requires no action on your part."

They definitely trimmed a lot of the benefits and is looking a lot more like a sub prime product , I used to love Discover and honestly I have not ever used the benefits but I did like the fact of knowing that I was protected when making certain purchases, definitely will shift my purchases somewhere else.

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Thanks for posting. My Discover It card was my first credit card and I only put one charge a month (Netflix) on it, but this is good to know.

My hope is that they raise their default % to 2% return. I shifted most of my spending to my Alliant Credit Card because they give 2% on everything and only use the revolving 5% on the Discover.

The only other time we used Discover was BECAUSE of the return guarantee/purchase protection, without that there is little to no reason to use it unless it is a revolving 5% category.

It might be worth calling. They have a number of different types of discover accounts and it’s possible they are removing it from one product but it’s still available on a different one and they can move you over

23 points · 5 months ago

Discover says they are discontinuing it entirely. They slipped this in on my last statement as well, and when I called, they said none of their products will offer these benefits after Feb 28.

Bummer. Time to cancel my discover card

15 points · 5 months ago

I wouldn't cancel. It adds to my overall credit line and average age of accounts. But I'm definitely switching my primary use to my other cards that offer better protections.

Comment deleted5 months ago(5 children)

I guarantee you Discover has done cost/benefit analysis on this and discontinuing it will end up being the right financial choice.

I am sure they have, however how many people used Discover because of these benefits even though they never used them?

I was one of those, big purchases went on the Discover due to these protections, without these protections there is no reason to use the Discover unless its the 5% category, my Alliant gives 2% back on everything.

Then they will lose you as a customer. But that will be outweighed by the savings they'll obtain from cutting those benefits.

I was mostly just poking fun at the original commenter saying "man it sure seems like discover will lose money on this!" when discover has already done extensive research and determined that's not the case.

I know.

Just because they did the analysis doesn’t mean they did it right. They easily could have miscalculated how many customers will phase out usage of their card.

But on the other hand maybe they got it right.

Hmm do you know if Amex still carries these things

Original Poster1 point · 5 months ago

AMEX is great with these benefits, their purchase protection progrM is top notch.

They do. Possibly the best in the industry. Citi and Chase offer most, if not all of these, as well.

I'm looking into other cards too, Discover IT card was my first too

Are past purchases still grandfathered in for things such as extended warranty?

Say I purchased a phone on December 2017 with a manufacturer's warranty of one year. The extended warranty extends it to December 2019. If my phone's motherboard fries on June 2019, will Discover still help me, or will I just get an unavailable tone with a "haha sucka!" jingle?

Read the terms, very likely they will grandfather protections for older things.

At least they still have price protection being offered. What a shame

I’ve used the rental car protection twice in 10 years for minor dings (~$300). It’s been a very painless process with MasterCard (I don’t own a personal vehicle so don’t carry personal car insurance, though it will cover your deductible if you do have it, and a few cards actually serve as primary insurance).

The only time I would’ve used my Discover card for a rental is the limited times auto and transportation comes into the 5x category. Definitely won’t do so even in that case now.

Guess it's new.

Discover was my first 'real' CC. Not a debit one. It's still an active account but I've moved away from it to one that offers basically 2% on everything. Even tho the 5% on certain places per quarter would be nice, I actually don't bother having to remember to bring my Discover card along just for those purchases every few months.

So I got a mail saying cause I haven't used the card in awhile, my account will be closed. I supposed its not big deal. Saves me from having to remember to carry another card around for those few times I may want to use it at those places, and reminding myself that I have check the balance for another account every month as well.

I cancelled my Discover card a few weeks ago. They were charging me for payment protection, which I called in and cancelled. Next few months, no payment protection charges. Then suddenly I see another $20 charge for payment protection. Call in... they reversed the charge after arguing and speaking with two different people. I decided screw it- not worth my time to go through this nonsense and called again and closed the account entirely.

I wonder how many millions they rake in by sneaking in this useless garbage.

Honestly, if nobody was using these benefits then I don't blame them. Did you ever use these benefits? If not, then this really doesn't impact you.

Original Poster3 points · 5 months ago

I have used the purchase protection benefit before, not with discover though. I don't think I will make any electronics purchase with Discover going forward, even if you don't end up using is like having insurance.

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