Purchase protection was introduced in the 1990s to add to the appeal of credit cards. Currently 70 per cent of UK credit cards offer this service – which automatically insures products bought on the card for between 30 and 100 days.

“These cutbacks, along with the recently announced increased balance transfer charges are further signs that card companies are looking for new ways to maintain their profit margins in this fiercely competitive market where interest free deals of up to 12 months are costing them dearly,” said Andrew Hagger, speaking on behalf of Moneyfacts, the financial product monitors.
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