Citigroup has begun offering a price protection service that promises to help save its customers money, if an item bought with a Citi credit card drops in price after a purchase.

Called Price Rewind, the free feature works for many purchases made with a Citi credit card (the card must be a Citi-branded consumer credit card; business cards don’t qualify). The idea is appealing, although there is some fine print on the program’s Web site that you’ll need to pay attention to.

Here’s the gist: You buy something in a store or online — say, a television. You then register the item by finding it online on the Price Rewind Web site, and entering details like when and where you bought it and the price you paid. You must save your receipt.

For the next 30 days, Citi’s system electronically monitors online prices for the same item. If it finds a price that falls $25 or more from your purchase price, the system alerts you by e-mail that you may qualify for a refund.

You then file a claim with Citi, along with a receipt. You can file the receipt electronically, by uploading a photo of it, or you may fax or mail it. (A Citi spokeswoman, Emily Collins, says the receipt is needed because purchase details aren’t necessarily itemized on credit card statements if you buy multiple items.) You can also file a claim by contacting Citicorp Insurance Services at 866-934-1140.

If the purchase qualifies, you’ll get a check for the difference in price in about 10 to 14 days after approval. You must file the claim within 90 days of the purchase.

While the refund isn’t automatic, the service does eliminate the need to keep checking yourself for possible price discounts after you buy something. And you don’t have to bring your item or receipt back to the store to collect the refund.

The program was originally tested in 2010 and is being expanded to all Citi cardholders. Citi says it has found lower prices for about a fourth of registered purchases over $100, and the average refund is $80.

There are limits and caveats, of course. You can get a maximum of $250 back per item and a total of $1,000 per year.

Purchases of most new items like electronics, clothing and toys are covered, but there are exclusions. Jewelry and airfares aren’t covered, for instance, and neither are live animals or “stuffed or mounted animals, animal or fish trophies,” according to Citi’s Web site.

If you’ve used the program, let us know about your experience.

Article source: http://bucks.blogs.nytimes.com/2012/11/19/citi-offers-price-protection-service/?partner=rss&emc=rss