116 3rd St SE
Cedar Rapids, Iowa 52401
FROM THE BUREAU: How to detect hidden fees
Shop around, review monthly bills
Businesses — restaurants, travel companies, grocery stores, ride-shares and more — are tacking on new fees to cover the basic costs of their services.
Businesses are feeling inflation impacts just like the rest of us, and some are adding fees to help them survive. Consumers should be aware of what fees businesses are adding so they can make informed decisions on where to spend their money.
Also watch for “shrinkflation” as some producers are not raising prices but will put fewer or smaller products in the same packaging. Read labels and choose options that give the most value.
What to watch for
Hidden fees might not be evident at first glance, so to avoid paying them, or at the very least budget for them, here are a few things the Better Business Bureau recommends to help spot fees and avoid them where possible.
- Don't necessarily believe the promoted price. More businesses are implementing "drip pricing," with fees added while items or services move through the buying process. Be wary of low prices where there may be further fees like fuel surcharges, cleaning charges, administrative fees, noncash adjustments and more.
- Don't be afraid to take your business elsewhere. Shop around. Don’t feel stuck. as many shoppers will just continue with a purchase even if they are unhappy with the additional fees. If you think the fees are too high, keep working to identify the best price.
- Comparison shop with fees in mind. Fees make comparison shopping more of a challenge. Be ready to do a little research before you buy. Identify the best price, always considering each business's fees as you calculate the total cost of any purchase.
- Pay with cash. Rising credit card fees are forcing some sellers to add a noncash surcharge or increase it for consumers purchasing goods or services with a credit or debit card. One way to avoid these transaction fees is by paying cash when possible.
- Make a complaint. Consumers who complain about a hidden or unexpected fee may be able to successfully dispute a fee, have it taken off a bill or refunded. If you get hit with a surprise charge as you check out, try speaking up reasonably, tactfully and politely.
- Budget for fees. In most cases, hidden costs are not illegal, which means there are some hidden fees you might just be obliged to pay. Incorporate necessary fees into your budget so they don't break the bank. Many of these types of fees are likely to be permanent.
- Watch out for cramming. Cramming is the illegal act of adding unauthorized charges without your knowledge or approval. Less-than-scrupulous companies add small charges to your bill and describe them with generic terms, such as "service fee," "voicemail" or "other fees."
- Review your monthly bills. Take a few minutes to review statements each month and check for new or unexpected fees. If you discover a hidden fee, take it up with the company. Even if they don't, it is important to know what you may expect.
Bobby Hansen is regional director for the Better Business Bureau Cedar Rapids office. Comments: (319) 365-1190; info@dm.bbb.org.
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