Americans spend billions of dollars every year on stealthy fees that are added to bills for everything from airline seats to concert tickets.
The Biden administration has targeted so-called junk fees as part of its effort to fight inflation, but some of its initiatives, such as a cap on credit card late fees, have faced legal challenges.
Here are steps you can take to minimize fees or skip them altogether.
Travel Fees
Airline Seat-Selection Fees
Typical Amount: $10 to $50 for standard seats; $20 to $100 or more for seats with extra legroom or in preferred locations.
Recently, several airlines announced a shift from an open seating policy to assigned seats and charges for seat selection. To avoid seat-selection fees, opt for not choosing a seat. However, if you prefer not to risk being placed in a middle seat, you can buy a ticket that includes seat selection.
Most major airlines include some level of seat selection with main-cabin tickets. Booking well in advance increases your chances of securing a preferred seat, but extra fees may apply for the most-desired locations, especially if you purchase a basic economy fare.
Airline Baggage Fees
Typical Amount: $25 to $35 for the first checked bag; $50 to $150 for additional checked baggage. One checked bag is typically included with international fares.
Unlike Southwest Airlines, which does not charge for checked bags, most other airlines impose fees for domestic travel. You can avoid baggage fees by using carry-on luggage only. Make sure your personal item fits under the seat in front of you to bypass charges most effectively.
In-flight Wi-Fi Fees
Typical Amount: $8 to $10.
In-flight Wi-Fi has improved significantly, with some airlines like JetBlue offering it free. Other carriers, like Delta Air Lines, plan to provide free Wi-Fi for most domestic flights by the end of 2024. If you travel with an airline that charges for Wi-Fi, check if your credit card offers reimbursement for these fees.
Hotel Resort Fees
Typical Amount: $20 to $50 per night.
Many hotels and resorts, particularly in tourist-heavy areas, charge resort fees to cover amenities like Wi-Fi and fitness center access. If you don’t plan to use these amenities, ask the hotel about removing the fee from your bill. Certain hotel chains may waive resort fees for stays booked with loyalty rewards points or free-night awards.
Rental-Car Fees
Typical Amount: Insurance fees typically range from $13 to $30 per day.
If you have an auto insurance policy, it often covers rental cars, particularly in the U.S. Nevertheless, if your policy lacks collision and comprehensive coverage, you might want to consider purchasing rental insurance. Some credit cards do provide rental-car insurance as a perk, though exclusions may apply for rentals in certain countries.
Dining and Entertainment
Food-Delivery Fees
Typical Amount: Delivery fees range from about $2 to $8, plus service charges of 15% to 30%.
Using on-demand food delivery services can lead to additional fees for convenience. Review the app for discount offers, or consider joining a subscription plan, which can help waive delivery fees on eligible orders. Ordering directly from restaurant websites or apps can also help bypass extra costs.
Peer-to-Peer Transfer Fees
Typical Amount: Around 3% for credit card transfers; 0.5% to 1.75% for instant transfers to bank accounts.
While peer-to-peer payment apps make transferring money easy, be cautious of credit card fees for sending money. Use a debit card or bank account to avoid these charges. Participating banks may allow free instant transfers between accounts.
Credit Cards
Late-Payment Fees
Typical Amount: $32 on average.
Many credit card issuers charge late fees for missed payments. To avoid these fees, consider setting up automatic payments. If you do incur a late fee, don’t hesitate to contact your issuer to request a waiver, especially if it’s your first occurrence.
Banking Fees
Overdraft Fees
Typical Amount: About $35.
Overdraft fees can be avoided by linking your checking and savings accounts, allowing automatic transfers to cover insufficient funds. If you consistently manage your account well, you might avoid these charges altogether.
Monthly Maintenance Fees
Typical Amount: An average of $15.33 for interest-bearing accounts.
Choosing a no-fee account or meeting a few requirements (like maintaining a minimum balance) can help you avoid monthly maintenance fees.
This article highlights various fees to watch out for in everyday financial activities, from travel to dining. Implementing these strategies may help you keep more money in your pocket.
