Avoid Holiday Tricks at the Mall

December 16th, 2009 • Related • Filed Under • by tisha

As people struggle to make ends meet and add a little somthing extra under the tree this Christmas, many still fail to resist some tricks that companies are using to make consumer spend more money than they need to or can afford to spend. From retailers to banks, everyone seems to be in on the action, looking to up their own profit margins during the biggest shopping season of the year.

Here are the common tricks of the trade to get you to part with your money you should be avoiding:

Overdraft Charges on Debit Cards

While many consumers have cut back on credit card use, they still use debti cards for the convenience. However, this time around you can find yourself paying big for a little mistake. Overdraft charges on debit cards used to be hard to come by as the financial institution would reject a charge that put the account over the limit. Nowadays, companies will clear the transaction then charge up to $40 for the service in addition to the amount you overdrafted. Shoppers who are not aware of the overdraft can rack up a lot of additional debt in one shopping trip.

Gift Cards

This trick can hurt your gift recievers more than you which doesn’t make for a nice gift. If you plan to give gift cards, be sure you know the terms. Many gift cards now come with a multitude of fees for different reasons, including inactivity charges and transaction fees. These fees take away from the value of the gift card and many times the card holder is aware of the limitations and additional fees.

Extended Warranties

When you purchase electronics and the like, you will more than likely be aksed at the register to purchase an extended warranty. Shoppers may have the unfair advantage of not understanding what the regular warranty is and being questions while in a hurry may result in an extended warranty purchase that wasn’t necessary.

Fees To ReShelve

Some companies are now charging consumers a percentage simply to restock the item if it has been returned in anything other than a factory sealed package it came in. The restocking fees can range from 15-20% and is deducted from any refund you may be expecting.

Unsure on Returns

If you purchase a gift you are not entirely sure will fit or is needed, you might find it difficult to return the item. Some companies are getting much more strict about their return policy terms, especially online stores.