We've all been there. Excited about buying a new full-suspension bicycle for $700, your happiness turns into bitter disappointment when that same bike goes on sale for $300 the very next week.

One perk that eases financial pain from discounts introduced after you buy is the price protection benefit, a lesser-known credit card reward. Credit cards with price protection refund all or part of price savings advertised within 60 days of original purchase.

Cards that offer price protection
CreditCards.ca uncovered seven Capital One MasterCard products that feature price protection. Among those, SmartLine Platinum MasterCard carries the lowest APR at 5.99 per cent and has no annual fee. Delta Sky Miles Gold MasterCard is the other Capital One card without an annual fee, but charges a much higher 19.8 per cent interest rate. Capital One Gold MasterCard boasts the second-lowest APR at 9.9 per cent and has a relatively low $49 yearly charge.

We found one Visa credit card that offers 60-day price protection, namely the Citizens Bank Shared Interest Gold Visa with its 19.5 per cent APR and $99 annual fee.

MasterCard limits 60-day price protection refunds to $100 per item, up to a $500 calendar year maximum. MasterCard also enforces a $10 minimum reimbursement rule, which eliminates refunds for relatively low-priced merchandise. In contrast, the maximum price protection under the Shared Interest Gold Visa card is $1,000 per calendar year; Visa applies neither a per-item limit nor a minimum refund amount.

In our full-suspension bike example, MasterCard price protection reimburses only $100 while Shared Interest Gold Visa refunds up to $400 (depending on how much of the $1,000 calendar year maximum was already used).

Price protection refunds are only provided for sale items that precisely match new products bought with your credit card and are based strictly on sale prices advertised in writing. Taxes and shipping costs are ineligible.

Price protection exclusions
CreditCards.ca reviewed the price protection fine print in cardholder agreements for other restrictions. Price protection specifically excludes refunds for the items below:

• Cell phones and other electronic devices.
• Computer hardware and software.
• Motorized vehicles, parts and fuel.
• Perishables, including food and liquor.
• Precious metals, all forms of money and stamps.
• Tickets including those for entertainment or transportation.

Many retailers run their own price protection specials, which are also excluded from credit card price protection. That way, you can't double-dip on refunds for the same product.

Other ineligible charges include:

• Gift card incentives.
• Liquidated merchandise.
• One-of-a-kind items.
• Online purchases.
• Products used for business.
• Purchases from retailers located outside Canada.
• Used items including store demos.

While the above restrictions may seem onerous, credit card price protection reimburses many products such as clothing, furniture, school supplies, non-motorized vehicles and non-electronic equipment.

Automated price-monitoring alerts
Price protection benefit refunds can be time-consuming, forcing you to watch for price discounts on specific merchandise for up to 60 days. Fortunately, free price-tracking alerts are readily available at websites like Price Protectr that you can set to automatically monitor product prices.

To create a Price Protectr alert, simply:

• Copy the web page URL pricing the item you bought.
• On Price Protectr, paste that URL into the ‘Find product information page' field.
• Click the ‘look it up' button to confirm the product description.
• Click on the 'price watch' tab, and then the ‘price watch' link.
• Use the calendar pop-up to change the ‘watch for' duration to 60 days.
• Add your email address to finish the alert.

If the posted product price goes down, Price Protectr automatically sends an email notice.

How to claim price protection refunds
Cashing in on eligible price drops requires that you notify the credit card company administrator within 90 days from purchase date.

The administrator will provide the applicable claim refund form, which you must submit with all necessary documentation within 120 days from when you charged the item to your credit card.

Be sure to keep original credit card receipts and statements that prove that the original transaction is eligible. You must also furnish a dated advertisement as evidence that the identical item was offered in Canada at a lower price within the 60-day price protection period.

After receiving a price protection cash refund, enjoy riding that new full-suspension bike even more.

See related: Big cash savings from little-known credit card freebies; Best travel rewards credit cards 2011