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PSA: Using TD Rewards Points will void any insurance coverage provided by your card

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  • May 9th, 2021 2:50 pm
[OP]
Newbie
Nov 25, 2019
5 posts
30 upvotes

PSA: Using TD Rewards Points will void any insurance coverage provided by your card

I've just tried to make an extended warranty claim through my TD First Class Travel Visa. The extended warranty does not apply for any purchases that are not made fully on the account (i.e. if any points were used, or possibly gift cards).

This is relevant with all of the recent promos with amazon encouraging the use of TD points on your purchase. Do NOT use TD points through amazon if you plan to count on the 90 day theft coverage or 1 year extended warranty.
13 replies
Deal Addict
Jun 28, 2017
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This is a pretty standard policy for all credit cards offering an extended warranty. The full price of the product must be charged to the card. Nothing new. Read the fine print unfortunately.
[OP]
Newbie
Nov 25, 2019
5 posts
30 upvotes
Thought this would be important to note given all the promos asking you to spend 3 TD points on amazon for $10-$20 off your purchase. It may not be clear that you are forfeiting your insurance coverage by doing so. If I were buying a laptop or something expensive, this may be a simple detail to overlook.
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Sep 16, 2015
485 posts
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Calgary, AB
zerosyncrate wrote: I've just tried to make an extended warranty claim through my TD First Class Travel Visa. The extended warranty does not apply for any purchases that are not made fully on the account (i.e. if any points were used, or possibly gift cards).
Thanks for the warning. This is weasel wording at its worst; there is no good excuse for refusing an extended warranty claim if part of the purchase was made with points. After all, 100% of those points were paid for by your purchases.
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Aug 18, 2008
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Thanks for the PSA.

I was vaguely aware of this in the past, but I appreciate the reminder regardless :)
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Oct 30, 2006
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jaybeeg wrote: Thanks for the warning. This is weasel wording at its worst; there is no good excuse for refusing an extended warranty claim if part of the purchase was made with points. After all, 100% of those points were paid for by your purchases.
How do you differentiate from those paid X% from another source, then put say 1% in the card just for warranty? That’s probably the main reason why.
Jr. Member
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Nov 21, 2016
192 posts
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abbotsford
redflagged2006 wrote: How do you differentiate from those paid X% from another source, then put say 1% in the card just for warranty? That’s probably the main reason why.
Yes, that would be the true with gift cards or other forms of payment beyond the td credit card. In this case, why should there be any problem “differentiating” anything if you use the td reward points on your purchase- because you already earned those points by using that very same credit card. It’s not necessarily a different form of payment anymore, it’s still the same credit card (unless you want to look at it very weasely... which they’ve done).

The idea is, you can’t use another card/cash to pay for 99% of it, and then charge 1% to this particular credit card. I get that. So what’s the problem with charging 100% percent of it to this particular credit card, and it just so happens the funds of that 100% are split between the credit + points on the card?
Deal Expert
May 30, 2005
46077 posts
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Richmond Hill
gyggyg wrote: Yes, that would be the true with gift cards or other forms of payment beyond the td credit card. In this case, why should there be any problem “differentiating” anything if you use the td reward points on your purchase- because you already earned those points by using that very same credit card. It’s not necessarily a different form of payment anymore, it’s still the same credit card (unless you want to look at it very weasely... which they’ve done).

The idea is, you can’t use another card/cash to pay for 99% of it, and then charge 1% to this particular credit card. I get that. So what’s the problem with charging 100% percent of it to this particular credit card, and it just so happens the funds of that 100% are split between the credit + points on the card?
Because insurance is done as a % of the transaction fee. There is no transaction (interchange) fee made on the points.
Newbie
Mar 31, 2007
63 posts
22 upvotes
shayne85 wrote: This is a pretty standard policy for all credit cards offering an extended warranty. The full price of the product must be charged to the card. Nothing new. Read the fine print unfortunately.
Apparently not so with RBC Avion Visa. From their web site https://www.rbcroyalbank.com/credit-car ... urance.pdf

" Items covered by Extended Warranty Insurance must have been purchased using your RBC Avion Visa Infinite card and/or RBC Rewards points. Personal property and gifts are included. The purchases can be made anywhere in the world. The original warranty must be valid in Canada".

They're not alone but, in my opinion, over the past few years at least TD is more guilty than others of charging exorbitant rates for their credit cards & fees, among other excessively greedy corporate maneuvers. Won't get into specifics but have personal experience (admittedly, more recent objectionable experience with TD than most other Canadian banks). Once current business is concluded, I will be leaving. I've not been screwed, per se, but do not like their escalating greed for ever more profit at the expense of their customers.
Deal Guru
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Jan 9, 2011
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shayne85 wrote: This is a pretty standard policy for all credit cards offering an extended warranty. The full price of the product must be charged to the card. Nothing new. Read the fine print unfortunately.
Also the same with CTFS Triangle Mastercard when buying stuff at CT family stores. If you redeem even 1¢ of Canadian Tire money on your purchase, you void your purchase security and extended warranty coverage.
Jr. Member
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Nov 21, 2016
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abbotsford
Jon Lai wrote: Because insurance is done as a % of the transaction fee. There is no transaction (interchange) fee made on the points.
It seems like you don’t understand my point, or the other who mentioned it prior to me. But maybe we’re just talking past one another too.

Yes, one way of looking at it is that there was no transaction fee made on the points and thus no insurance. Another way of looking at is that there was a transaction fee made at one point in the past: that’s how the points were earned in the first place!

So this isn’t really about correct vs incorrect. I’m not saying the bank’s lawyers were “incorrect”. Just because a policy like this may have a “technical” explanation for it, that doesn’t mean it’s bound by that technicality. Grounds and bound are two different things.

So really.. This is just about right or wrong (not in a moral sense, but just a consumer friendly-ness sense). How one interprets and applies their insurance program is completely up to the company, it’s not written in stone somewhere out on an ancient mountain-side. It’s just a rule a bunch of people decided on in a board room. So The sneaky weasel-y way of doing it is to interpret it in the restrictive sense as with the td rewards... and many other cards chose to do that too. But as seen a couple posts above, there are cards like the RBC one that are “gracious” enough to allow the use of points when making warranty claims. They just chose to interpret/apply it differently.
Deal Expert
May 30, 2005
46077 posts
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Richmond Hill
gyggyg wrote: It seems like you don’t understand my point, or the other who mentioned it prior to me. But maybe we’re just talking past one another too.

Yes, one way of looking at it is that there was no transaction fee made on the points and thus no insurance. Another way of looking at is that there was a transaction fee made at one point in the past: that’s how the points were earned in the first place!

So this isn’t really about correct vs incorrect. I’m not saying the bank’s lawyers were “incorrect”. Just because a policy like this may have a “technical” explanation for it, that doesn’t mean it’s bound by that technicality. Grounds and bound are two different things.

So really.. This is just about right or wrong (not in a moral sense, but just a consumer friendly-ness sense). How one interprets and applies their insurance program is completely up to the company, it’s not written in stone somewhere out on an ancient mountain-side. It’s just a rule a bunch of people decided on in a board room. So The sneaky weasel-y way of doing it is to interpret it in the restrictive sense as with the td rewards... and many other cards chose to do that too. But as seen a couple posts above, there are cards like the RBC one that are “gracious” enough to allow the use of points when making warranty claims. They just chose to interpret/apply it differently.
The transaction fee made on the initial purchase that earned the points would have insured that original item.

Ie. Initial $10000 purchase provided $100 in points and insurance for $10000 item.

Upon redemption of $100 points, where does the insurance premium for the $100 come from? The only option is if you they were to charge insurance premium when issuing the points - so for example, you would only get $99 in points instead of $100.

It's not about interpretation, but rather what insurance policy are they buying? Sure, they could've went with a costlier one to provide additional benefits. As with all insurance policies, the company (or individual) has to decide what is worth it and what isn't. Why is your life insurance at $1M and not $1.01M?
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Apr 29, 2018
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zerosyncrate wrote: Thought this would be important to note given all the promos asking you to spend 3 TD points on amazon for $10-$20 off your purchase. It may not be clear that you are forfeiting your insurance coverage by doing so. If I were buying a laptop or something expensive, this may be a simple detail to overlook.
This is true with Rogers cards also. It is also clearly mentioned in the T&C, that they send with the card.
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