In an ideal world, buyers and sellers would work together to reach a deal with which both were happy. In the real world this does sometimes happen. Sadly it also happens that sellers try to take buyers for as much as they can get. What is more they can use very underhand tricks to achieve this. Here are a few (and what you can do to avoid them). Dynamic Currency Conversion http://www.theukcardsassociation.org.uk/individual/dynamic-currency-conversion.asp Some shops, restaurants and cash machines abroad now offer a service called Dynamic Currency Conversion. This one only applies in specific circumstances, but it can be such a nuisance, it is worth looking out for it. Dynamic currency conversion is when a price is advertised in a foreign currency but charged to your card in your own currency – at the merchants exchange rate. This is supposed to be an extra, add-on service. It is meant to give added convenience to international travellers and online shoppers. To be fair, it can be used entirely transparently and accurately. It can also be a useful way for buyers to avoid foreign-exchange fees. Unfortunately it can also be used to increase an item’s price in a subtle way. If you are looking to get the absolute best deal, you can check the merchant’s converted price against an independent exchange-rate calculator. Then you can decide whether to accept it or just take the hit with foreign-exchange fees. Alternatively you could look at getting a card in the currency of the purchase, i.e. a travel-money card. Forgetting to Cancel after Trial Periods Some companies offer a free trial of their add-on services. They may take your billing details up front so that they can start to bill you after the trial is over, unless you actively remember to cancel. Likewise some products, such as credit cards, offer introductory benefits for a certain period. They will then apply their standard rates at the end of this period unless you actively cancel. On a similar note some contracts are for a fixed length of time after which they renew automatically unless you actively opt out. There are two ways this can hit you in the wallet.
Companies increasing fees without you noticing (in time).
Companies failing to inform you that they have better deals available. The way to avoid all of these extra costs is to stay on the ball. Make a note of when introductory offers and contracts come to an end. A paper calendar or diary is one way to do this. In this age of smartphones, however, you can put a note in an electronic calendar. Then you can set yourself a reminder to take action in good time. This is particularly useful for services such as insurance policies. In these cases you may well need the service but will want the best price. Give yourself time to shop around. “Untick the Box” Charges You buy an item for £10 but when it appears on your statement it is £12. You query this and discover that this was an optional extra. The box was helpfully ticked automatically and you never unticked it. There are lots of variations of this trick. One is to make customers go through the entire purchase process and then add in an effectively unavoidable fee at the end to complete the purchase. Yes, customers could click close and walk away, but by that point there is a good chance they will just grit their teeth and pay. Then of course there are add-on fees for items you might have expected to be included. Charges for hand-luggage on planes are one example of this. The strategy for avoiding these is a combination of alertness and determination. You need to stay alert to what is and is not included in any purchase. You also need to be realistic about when to walk away from a transaction. If you saw a headline price of £20 but “extras” bump it up to £40, is it still a good deal?
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