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How to Spot Hidden Fees and Extras in Your Spending

5 min read

Summary: Small fees and extras can slip into your spending without you noticing. Knowing what to look for helps you keep more of your money.

Why fees matter in a budget

A fee of a few coins does not feel like much. But fees repeat, and they are easy to miss when you only look at the big items. When you track your spending, the US Consumer Financial Protection Bureau (CFPB) suggests asking which service fees you could remove and whether you are paying for subscriptions you do not use.

The rules below come from Your Europe, the EU's official guide for citizens. They apply to the EU. If you live in the US, the UK or another country, the rules may differ, so look for your own consumer body. The habits still help anywhere.

1. Look for the total price

In the EU, you must be clearly told the total price, including all taxes and additional charges. Before you pay, check that the number you agreed to matches the number charged.

2. Look for pre-ticked boxes

Extras such as express delivery, gift wrapping or travel insurance need your explicit consent. A pre-ticked box does not count as consent. If you were charged for an extra this way, you can get that payment refunded. So read the basket page slowly, and untick what you do not want.

3. Check card charges

In the EU, traders may not charge extra for paying by credit or debit card. There are exceptions. American Express and Diners Club cards, and business cards, can carry a fee, which must not be more than the trader's actual cost of processing the payment. If you see a card fee you did not expect, it may be worth asking about it.

4. Watch currency fees

If you pay in a non-euro EU currency, your card provider may charge a currency conversion fee. If a trader offers to charge you in your home currency, it must tell you the extra cost as a percentage mark-up over European Central Bank rates. You can always choose to pay in the local currency instead. Compare both and pick the lower total.

Taking cash out in another currency can cost more than one fee: Your Europe lists a foreign transaction fee, a conversion fee and an ATM owner fee as possible.

5. Know the contract before you subscribe

Your Europe says you should know the contract duration and the conditions for ending it before you sign up. For "free" online services, your personal data is the price, and a 14-day right of withdrawal applies in the EU when you give data instead of money. Our guide on cutting your monthly subscriptions has more.

6. Look for amounts blocked on your card

Hotels and car hire firms may block an amount on your card. You must approve the exact amount, and the bank must release the blocked money once you have paid the real bill. If it stays blocked, contact your bank.

7. Check for wrong direct debits

If a direct debit is wrong or taken by mistake, you have the right to a refund within 8 weeks in the EU. This is one more reason to look at your statements regularly.

A simple routine

1. Open last month's statement.
2. Mark any line you do not recognise or did not choose.
3. Look for card fees, currency fees, ATM fees and repeated small payments.
4. For each one, ask: Was this agreed? Is it right? Can I avoid it?
5. Ask the company or your bank about anything that looks wrong. Banks must answer a written complaint within 15 days, or within 35 days in exceptional cases, according to Your Europe.

An example

This is an example with made-up amounts.

Ana looks at her statement and finds a travel insurance charge of 12 on an online order. She did not pick it. The box was pre-ticked. She asks the seller for a refund. She also sees two ATM fees of 3 each from a trip, so next time she will take out one larger amount instead of two small ones. In one pass she has found 18 in avoidable charges.

Limits

These pages give general rules, and national law and your contract can add details. If you are not sure whether a charge is allowed, ask the company first, then your bank or a consumer body.