With package theft costing consumers an estimated $15 billion annually and approximately 250,000 packages stolen daily, online retailers are increasingly adding optional “order protection” fees at checkout. Do you need this?
You may already have coverage through their payment methods.
What is an order protection fee? Do I need it?
These protection fees, typically ranging from $3 to $10, function as insurance against lost, stolen, or damaged deliveries.
Some retailers automatically add these charges to orders, warning customers they won’t be responsible for missing packages if the protection is declined.
We found added fees on everything from boots to protein drinks.
There are other options for package protection.
PayPal and several major credit card companies, including Visa, already provide automatic purchase protection for items that are lost or stolen during delivery.
Free Package Tracking Alternative
The U.S. Postal Service offers a free alternative for monitoring deliveries. Their Informed Delivery app, launched in October 2025, builds on a service available since 2017.
The app sends daily notifications with images of incoming mail and packages. You can also sign up for daily emails that send this same information.
Tips for Protecting Your Packages
Before paying for additional protection, consumers should:
- Check their credit card benefits for existing purchase protection
- Consider using PayPal for automatic buyer protection
- Download the free USPS Informed Delivery app
- Review retailer policies on lost or stolen packages