In particular, I’m referring to benefits like extended warranties and longer return periods. Some of the Amex cards have a 90 day extended return period for purchases. But if the merchant won’t take it back, where does it go? Does Amex just eat the loss? Same thing for warranties – who’s doing the servicing if it’s out of the original manufacturer’s warranty period?
I’m not in the credit card business, so it’s just a WAG, but I could imagine Amex’s card acceptance contracts with the merchants regulate this; there could be a clause that obligates the merchant to take it back if it was paid for by an Amex card.
It’s insurance. You present a claim and if they approve it they pay you. Nothing else.