I noticed something quite extraordinary (and expensive!) these last few weeks. Maybe you have too. Have you looked at your receipts lately? A few weeks ago, for the first time in a very long time, my husband and I went out for a late lunch/early dinner at a local restaurant here. When I looked at the bill (as all our fellow frugalistas are known to do) I noticed the restaurant changed us a 3% credit card fee. First off, how did they know we were using a credit card to begin with to justify the fee? Lastly, it was only $2 bucks, so I shrugged it off. We get back 3% from our charge card company whenever we buy groceries or dine out in a restaurant. So, I thought it to be naught.
Next I noticed a new sign being posted at one of my favorite grocery stores (of which I only shop their loss leaders). The sign stated that there was now a $1.99 (two bucks) charge added to any customer's bill using a debit card. WTF? Isn't debit the same as cash, I asked myself? Why are they charging an extra two dollars whenever a customer is using their bank debit card? Nonetheless, I still wasn't deterred because it didn't affect me. There wasn't any added charged to my credit card and I was still getting that 3% back, remember?
Now comes the real game changer. I went to get a haircut at my favorite, long time salon on Tuesday and I noticed yet another big sign hung up by the cash register. Here in New York, customers are to be alerted if any additional charges will be added to a customers bill. In bright, bold letters, the hair salon announced that there was going to be an additional 4% added to a client's bill if they were using a credit card. To avoid the increase, cash and personal, established checks would reduce the additional fee. Since I didn't have neither the cash nor a check with me (who carries checks anymore) I paid the 4% additional fee but cut the tip. Geez, a girl's gotta live doesn't she?
These three separate instances had me thinking. If I pay my home insurance, car insurance and RV insurance with a credit card, the insurance companies tack on an $8 a month additional fee. However, if you authorize the insurance company to do a bank withdrawal out of your checking or savings account, they only charge a $2 fee each and every month. When I sat there and thought about these additional fees, I realized I was paying my insurance companies an additional $72 a year just to pay my friggin' bills!!!
In this economy, when all of us are looking for ways to save money, I quickly changed my insurance bills to autopay (at least my bank isn't charging me for that service. YET!!!) and I am now carrying cash AND my checking account blank checks. Just in case. Is my grocery store charging me fees? Not as far as I can see. But, who will be next on this fee list? What is going on? Every corporation, every company, everyone and their brother are charging the consumer (that's you and me) fees, fees and more fees.
Prices are going up. Most everyone is struggling to survive. Many are concocting new and ingenious ways to separate you from your money. Be alert, folks! Read the small print. Don't be too quick to whip out your credit card and swipe to pay a bill. Maybe it's time for many of us to go back to the well established 'envelope system'.
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