Learn how to avoid or reduce fees that seem to be appearing everywhere.
Hospitality fees at hotels. Kitchen appreciation fees at restaurants. Service fees on concert tickets. More fees than ever are making it harder for consumers to know how much a purchase really costs. Here’s how to stay on guard for hidden fees—and in some cases avoid them.
Be wary of extremely low prices
When you comparison shop, you get a good idea of what something costs. An especially low price is a signal to dig deeper. Low promotional prices are often paired with added fees that jack up the final price. If a price seems too good to be true, it probably is.
Navigating airline fees
Airlines fees can be a significant travel expense. Travelers need to decide which services are worth paying for and which ones they can live without.
Seat selection fees can be avoided if you’re willing to be seated wherever the airline assigns you. However, if you want to be seated with family or friends, you’ll have to pay for seat selection.
If you travel only with a carry-on, you can skip upcharges for baggage. If you must check a bag, paying for this at the time of booking is usually cheaper than paying at the airport. Also, choosing a better seating class sometimes includes a checked bag in the fare.
Before heading to the airport, review your carrier’s policy about checking in. Some airlines now charge a fee for checking in with a counter agent; the fee can be avoided if you check in with the airline’s app or at their kiosk.
Cleaning fees at vacation rentals
Before booking a vacation rental, carefully examine the cleaning fees. A single charge for the whole stay may be reasonable. However, if the fee is charged for each night, costs quickly escalate. Many people avoid excessive cleaning fees by booking their stay at a hotel and tipping the housekeeper who makes up their room each day.
Hotel and resort fees
Online hotel shopping is more transparent when hotel websites offer an option to see rates with taxes and fees. If such an option isn’t available, navigate to the reservation page to get the billing summary that does include taxes and fees.
In most cases hotel and resort fees can’t be avoided. If there’s a parking fee at the hotel and you didn’t travel there by car, you may be able to get it waived if you ask.
Restaurant fees
Tipping restaurant servers has long been the norm. What’s newer are fees for kitchen staff or living wages that are automatically added to the bill. Those who dine out can learn about possible fees in advance by checking the restaurant’s website or calling them to learn about their billing policy. If the fees seem unreasonable or will hurt your budget, opt for a different restaurant or have dinner at home.
Food delivery fees
Food delivery apps make getting meals convenient, but they come with added service fees. See if you can order directly from your favorite take-out spot and look for restaurants that offer free delivery. Even if you skip the app services, be sure to tip your delivery driver.
If you’re a frequent user of food delivery services, consider the apps with premium services that charge a monthly fee; the subscription fee may be less than the multiple delivery fees.
Ticket service fees
Buying tickets directly from the venue’s box office often helps buyers avoid or at least reduce service fees. Skip ticket purchases from middle-man ticket sellers when possible.
Review bills
With every purchase, take time to review the bill. If you see objectionable fees, don’t be shy about questioning them. In many cases, unexpected fees will be removed for those who complain.
Avoiding fees whenever possible and objecting to those you don’t expect can help you save money.
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FAQs
With every purchase, take time to review the bill. If you see objectionable fees, don't be shy about questioning them. In many cases, unexpected fees will be removed for those who complain. Avoiding fees whenever possible and objecting to those you don't expect can help you save money.
What hidden fees do credit card companies charge consumers? ›
By Learning the different ways that credit card companies extract money from your wallet, you'll become a more responsible and financially savvy cardholder.
- Annual Fee. ...
- Penalty interest charges. ...
- Cash advance fee and interest rate. ...
- Late payment fee. ...
- Foreign transaction fee. ...
- Balance transfer fee. ...
- Overlimit fee.
Review your monthly bills.
Take a few minutes to review your statements each month and check for new or unexpected fees. If you find a hidden fee, take it up with the company. They may be willing to reduce or remove the fee in some cases.
What is an example of hidden fees? ›
Undisclosed fees from financial professionals and brokers. Inactivity fees charged by a credit card company. Charges to attend an entertainment or sports event. Fees deducted by hotels and other retail operations.
What are the five 5 steps that consumers go through during a purchase decision? ›
What is the consumer decision making process. The consumer decision-making process involves five basic steps. This is the process by which consumers evaluate making a purchasing decision. The 5 steps are problem recognition, information search, alternatives evaluation, purchase decision and post-purchase evaluation.
What are six ways to avoid unnecessary credit costs? ›
You can avoid unnecessary credit costs by accepting only the amount of credit you need, making more than the minimum payment, don't increase spending when your income increases, keep your credit accounts to a minimum, pay cash for small purchases, understand the cost of credit, shop for loans, and take advantage of ...
How to avoid surcharge? ›
Pay cash. While businesses can charge a surcharge for paying with a credit, debit or prepaid card, they can't charge you more than the advertised price if you're paying in cash.
How to avoid payment processing fees? ›
8 ways to minimize payment processing fees
- Review your statement regularly. Your statement shouldn't have any surprises. ...
- Switch processors. ...
- Try surcharging. ...
- Set a credit card minimum. ...
- Accept cards in person. ...
- Chargeback policies and fraud prevention. ...
- Offer cash discounts. ...
- Partner with Sekure.
In 1985, California passed a law (Civil Code section 1748.1) that prohibited merchants from adding a surcharge (an extra fee) when customers pay by credit card instead of cash.
Why are hidden fees bad? ›
According to the Harvard Business Review, this is bad for consumers because “this practice makes price comparisons challenging which restricts competition.” Plus, consumers cannot make educated decisions because they are typically unaware of the additional “hidden” fee until after they've committed to the purchase.
There are plenty of tools to help figure out where money is being lost, like budgeting apps Mint and subscription tracking apps like Truebill, which connects with your bank accounts and lets you pick how much to pay.
What are sneaky fees? ›
"Junk fees" are exactly what they sound like: A spate of additional, hidden charges that companies pass on to the consumer that cost little (or nothing) for them to provide.
How to avoid paying hidden fees? ›
Another tip they suggest is to pay in cash when you're able, as many establishments like to charge hidden 'convenience fees' when you use a debit or credit card. This may not always be feasible, but if they do charge you a fee for using a card, ask them to waive it.
Is it illegal to charge hidden fees? ›
Beginning July 1, 2024, the “Honest Pricing Law” or “Hidden Fees Statute,” SB 478, which was recently amended by SB 1524, makes it illegal for most businesses to advertise or list a price for a good or service that does not include all required fees or charges other than certain government taxes and shipping costs.
How to avoid hidden costs in dark pattern? ›
Best Practices and Tips to Avoid Dark Patterns
Don't hide important disclosures or delay providing key details. For example, clearly display all costs, including additional or hidden fees, before the user commits to a purchase.
What are the four steps you can take to control your costs? ›
Cost Management explained in 4 steps
- Step 1: Resource planning. Resource planning is the process of ascertaining future resource requirements for an organization or a scope of work. ...
- Step 2: Cost estimating. ...
- Step 3: Cost budgeting. ...
- Step 4: Cost control.
Many checking accounts are free when your paycheck or benefits check is automatically deposited each month—and your money will be available immediately. Keep a minimum balance. Keep at least the minimum balance required in your account. This helps to avoid monthly fees and accidental overdrafts.
What are the four steps in the process that consumers go through when making a buying decision quizlet? ›
- The steps in the process are: (1) need recognition, (2) information search, (3) evaluation of alternatives, (4) purchase, and (5) post-purchase behaviour.
What consequences might consumers face if they are influenced by paying hidden fees? ›
Negative Perception: hidden fees can create a negative perception of the company. Customers feel tricked and deceived when they discover these hidden fees. This results in a loss of trust and loyalty towards the company. Customers are more likely to switch to another company that offers transparent pricing structures.
