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Six Christmas shopping ?gotchas? to avoid
Dec 19, 2009 (Tulsa World - McClatchy-Tribune Information Services via COMTEX) --
Even the most disciplined shoppers can fall prey to strategies used by some grinchy businesses, Consumer Reports says.
Here are some potential "gotchas" to watch out for, as described by editors in the December issue of the organization's Money Adviser newsletter:
1. Debit overdraft fees. Banks used to reject a purchase that exceeded the balance in an account. But many will now process the transaction and then charge customers an overdraft charge ranging from $22 to $39.
Buying several gifts in one shopping trip could result in multiple fees.
How to avoid it: Use a credit card for large gift purchases, especially if you pay your balance in full each month. Credit cards offer greater consumer protections than other forms of payment if your account number falls into the wrong hands. Use a debit card for small purchases if you're relatively certain you won't need the extra protection of a credit card and you're sure you won't exceed your account balance. Or use cash.
2. Deep-discount price bait. Many retailers promote deep discounts in "door-buster" sales where there are a limited number of sale items. In a more deceptive version of these sales, an item is advertised at a super-low price on a Web site, but it's just a come-on to get you to buy something else and spend much more.
How to avoid it: Be wary of unrealistically low prices when shopping online. Don't buy additional products or services just because you're
getting what looks like a good deal on one.
3. Gift card fees. Gift cards can shorten your holiday shopping time, but Consumer Reports' experts generally advise consumers to avoid them. Some come with purchasing and processing fees, expiration dates, transaction fees and inactivity fees that unfairly diminish their value over time. And the retailer could close its doors.
How to avoid it: Consider giving cash instead of a gift cards. If you do buy one, try to stick with ones issued by financially sound retailers.
4. Return policy limitations. Some companies might have different return requirements for items bought in their stores, through their Web site or by mail order. Many stores track returns, so if the software flags you as someone who has brought back too many items in a short period of time, your return may be denied.
How to avoid it: Ask for a store receipt and a gift receipt for the items you buy.
Wrap gifts in their original packaging. Check the rules before you try to return a gift.
5. Restocking fees. Many items, especially electronics like digital cameras, camcorders, desktops and laptop computers are subject to a 15 percent to 25 percent restocking fee if they are not returned in a factory-sealed box.
How to avoid it: Don't open a package if you don't want what's inside. Items like computer software, music CDs and movie DVDs aren't generally returnable after the seal has been broken.
If you are slapped with a restocking fee, try to negotiate a partial refund. But you shouldn't have to pay any fee if an item is defective when you unwrap it.
6. Extended warranties. These are notoriously bad deals.
Some repairs are already covered by the standard warranty that comes with the product. Consumer Reports' data shows that products seldom break within the extended-warranty window.
How to avoid it: Check your credit card agreement before you even consider buying an extended warranty to see if charging an item on your card will provide similar coverage. If you can't rely on your card's additional coverage and still want an extended warranty for peace of mind, don't pay more than 20 percent of an item's purchase price for one.
To see more of the Tulsa World, or to subscribe to the newspaper, go to
http://www.tulsaworld.com. Copyright (c) 2009, Tulsa World, Okla. Distributed by
McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax
to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave.,
Suite 303, Glenview, IL 60025, USA.
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