American Express Removes Lost Items Coverage From Purchase Protection

American Express has made a significant change to its purchase protection benefit, quietly removing coverage for lost items across its credit card portfolio. The modification, which took effect immediately, represents a notable reduction in consumer protections for the issuer's premium cardholders.

Details of the Policy Change

The updated purchase protection benefit now covers only theft and damage to eligible purchases, eliminating the previous coverage for items that cardholders simply lose. This change affects multiple American Express credit cards, though the company has not provided a comprehensive list of which specific cards are impacted.

Purchase protection has traditionally been one of the valuable benefits that premium credit card issuers use to differentiate their products from basic cards. The coverage typically reimburses cardholders for eligible purchases that are stolen, damaged, or lost within a specified time period after purchase, usually 90 to 120 days.

The elimination of lost item coverage means American Express cardholders will no longer be able to file claims for items they misplace or accidentally lose. This could include scenarios such as losing jewelry, electronics, or other valuable items purchased with the credit card.

Industry Context

This benefit reduction comes at a time when credit card issuers are increasingly scrutinizing their rewards and protection programs. Many financial institutions have been adjusting their benefit offerings in recent years, often citing program costs and fraud concerns as driving factors behind such changes.

The modification also occurs as the credit card industry continues to evolve, with issuers launching new products and promotional offers. Recent market activity has included new card launches such as the U.S. Bank Business Shield™ Visa® Card, which debuted on February 2, 2026, offering a 0% introductory APR for 12 billing cycles on purchases and balance transfers.

How Purchase Protection Typically Works

Purchase protection benefits generally work by providing reimbursement for eligible items that are stolen, damaged, or lost within a specific timeframe after purchase. Cardholders typically need to:

• Make the purchase entirely with their eligible credit card
• Report the incident within a specified time period
• Provide documentation such as receipts, police reports (for theft), or other evidence
• File a claim through the credit card company's benefits administrator

Coverage limits and exclusions vary by issuer and card type, but premium cards often provide more generous coverage amounts and longer protection periods.

American Express's Competitive Position

American Express has historically positioned itself as a premium card issuer, offering enhanced benefits and protections to justify higher annual fees on many of its products. The company's cards often compete with other premium offerings in the market by providing comprehensive travel benefits, purchase protections, and rewards programs.

This reduction in purchase protection coverage could impact how American Express cards compare to competitors that still offer comprehensive coverage including lost items. Other major issuers may use this as an opportunity to highlight their more complete purchase protection benefits.

Timeline and Implementation

The policy change took effect immediately without a grace period for existing cardholders. American Express characterized the update as occurring "quietly," suggesting the company did not make a major public announcement about the modification.

This immediate implementation means that any purchases made after the policy change would be subject to the new, more limited coverage terms. Cardholders who may have relied on the lost item coverage for recent purchases would need to verify whether their specific situation falls under the previous or updated policy terms.

What This Means for Cardholders

American Express cardholders should immediately review their purchase protection benefits to understand the new coverage limitations. The elimination of lost item coverage represents a significant reduction in the value proposition of affected cards.

Cardholders should consider:

Adjusting Purchase Strategies: For high-value items that might be easily lost, cardholders may want to consider alternative payment methods or seek separate insurance coverage. Documentation Practices: With coverage now limited to theft and damage, proper documentation becomes even more critical. Cardholders should ensure they can demonstrate that an incident involved theft or damage rather than simple loss. Alternative Coverage Options: Those who frequently relied on lost item coverage may need to explore standalone insurance products or consider credit cards from other issuers that still offer comprehensive purchase protection. Existing Claims: Cardholders with pending claims for lost items should contact American Express immediately to understand how the policy change affects their specific situations.

Looking Ahead

This policy change reflects broader trends in the credit card industry, where issuers periodically reassess and modify their benefit offerings. While American Express has reduced this particular benefit, the company continues to offer various other protections and rewards that may still provide value to cardholders.

The modification also highlights the importance of regularly reviewing credit card benefits, as these can change without extensive notification periods. Cardholders should stay informed about their card benefits and adjust their usage patterns accordingly to maximize value from their credit card relationships.

As the competitive landscape continues to evolve, it remains to be seen whether other major issuers will follow American Express's lead in reducing purchase protection coverage, or whether they will maintain more comprehensive benefits to attract customers seeking robust consumer protections.