When a business tries to implement a significant price increase, people notice and often protest against the increases.  To prevent this, many businesses have begun using a sneaky way to increase their profits – by using hidden charges to increase the amount paid for their products.  There are hidden charges everywhere, but you can avoid paying them if you are a perceptive consumer and take the time to think about your purchases before making them.

Convenience Charges

One of the most notorious hidden charges is the convenience charge.  Convenience charges appear in every industry, from purchasing entertainment tickets online to paying for products over the phone.  Many convenience charges are a small percentage of the total price so few people complain about them.  The simplest method of avoiding a convenience charge is determining the actions that trigger the charge and avoiding those actions.

Service Charges

Another popular trend is for businesses to charge for a live person, not a machine, to assist you when you do business with their company.  Many banks have a limit on the number of times you can use their tellers in a specific time period, charging you if the teller window is used more often.  Some government departments charge an additional amount if the service desired is conducted in person instead of by mail or over the phone.

It is hard to predict what services will incur an additional charge as each business makes its own decisions on the preferred method of operation and will limit its service charges to other methods that are not as favored.  Some businesses charge for making payments over the phone while others charge for transactions conducted online.  It is important to review the terms and conditions for any account or service agreement to see what may trigger a service charge.

This entry was posted on Wednesday, January 25th, 2012 at 2:05 pm and is filed under tips. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.