The use of sneaky fees by service companies is growing
In early February, United Airlines began to charge customers $25 for an extra bag. Some rental car companies charge an airport concession fee if the lot is conveniently located near the airport. A hotel in Las Vegas now bills customers for any item they take out of the minibar for more than 60 seconds, even if it is not consumed. Some bank gift cards lose part of their value if not used by a certain date.
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banks collect up to a 3 percent processing fee for third-party credit transactions. Most of that 3 percent is called the “interchange fee.” That fee has outraged merchants in continental Europe, where credit card use is sparse and consumers are accustomed to debit cards. In December the European Commission won a case against Mastercard that requires it to eliminate interchange fees within the next six months.
As I have mentioned before the problems of bad practices by financial companies and the unfortunate truth that they force you to be on guard against them tricking you and taking your money. The Curious Cat credit card tips page provides advice on how not to get tricked by credit card companies into paying big fees along with some other tips.
It a shame financial companies don’t seem to believe in providing an honest service and making a profit as part of provide good value. Instead you have to watch them with the belief they will take you money if they can trick you (through hidden fees, misleading ads…). And it is sad other companies are expanding such anti-customer methods to other markets.
Related: Credit Card Currency Conversion Costs – Bad Practice: .05% Interest – Customer Hostility from Discover Card – Challenge Those Credit Fees
Comments
5 Comments so far
Too few organizations seem to have progressed beyond thinking that business is amoral. Actual good behavior is worthy of praise compared to what else goes on so often…
[...] and con their customers out of cash. Certain industries seem to prefer this tactic: credit cards, banks, printer companies… To avoid rewarding them for behaving badly read: Take That, Stupid [...]
“Take out cash from an ATM in London, and you’ll get hit with a foreign-transaction fee, plus a fee for using a competitor’s ATM. All told, it can cost up to $7 just to withdraw $200…”
The incredibly large fees are a good reason to not use your credit card for these activities. 5% to get money from an ATM. You have to be crazy to submit to such a fee…
[...] I have said before, don’t trust your bank. More than any other companies I see, financial institution, treat customers as fools to be fleeced [...]