Do you know what your store cards are costing you?
Unused store cards can quietly drain your money. Find out how to cut the cost, plus get tips on travel visas, safe payments, Smart IDs and after-sales service.
Store cards can quietly drain your wallet through monthly service fees, even if you have what you assume is a zero balance. Last month, Woolworths raised its store card fee to R52.49 a month, applying it even to those customers who have a zero balance. That works out to R630 annually just to hold an idle account. While legal under the National Credit Act, this service fee is nearly ten times higher than that of competitors such as Truworths.
So, if your store card is sitting unused, settle the balance and close it via email to avoid paying for absolutely nothing.
Missing a visa rule could cost you - a lot
Here’s a visa warning for people travelling on an SA passport.
A couple flew from Johannesburg to Auckland, with the return journey being via Perth, but when they arrived at Auckland airport, they were refused boarding. Their Perth layover was longer than eight hours, which meant they needed an Australian transit visa, and being Sunday afternoon, it was far too late to apply for one.
So, they had to buy two Cathay Pacific tickets home via Hong Kong instead, which cost them R22 862.
Neither the airline nor the online booking site had warned them. But visas are the passenger's responsibility, and you can't hold a travel agent liable for getting that advice wrong.
So do your own visa homework for every country you land in, even the ones you're only passing through. If you're at all unsure, pay a visa consultant. Far cheaper than a last-minute ticket home.
Even with saved beneficiaries, check the account details before paying
When you pay a company by EFT, where do you get the banking details? If the answer is "they're saved in my banking app", that’s worth a second thought.
A Truworths account holder fell into arrears, was handed over to a debt collector, and then faithfully made her debt repayments into their bank account - she had them saved as beneficiaries since 2013 when she previously had to make up missing payments. But the debt collectors had meanwhile switched banks, so her money landed in a dormant trust account, nobody's systems picked it up, and she spent months being chased by debt collectors, while sitting with proof of every payment.
So, before you make any payment, phone the company on its published number to check their bank details. This habit will also protect you from business email compromise fraud - when fraudster intercept emails with attached invoices, remove the company’s bank account details and insert their own.
Still using the green ID book? Let your bank help you out, pronto
Home Affairs has launched a site that shows you the closest bank branch where you can apply for a Smart ID Card. It's at myhomeaffairsonline.dha.gov.za.
There are 372 participating branches so far, and new ones appear on the site as they sign up.
Since March, more than half a million people have applied for a Smart ID through a bank rather than a Home Affairs office.
The reason to bother: the green barcoded ID book is the fraud-prone one. It's far easier to abuse than the card. So, if you're still carrying the book, look up your branch and go and swap it.
How much do you value after sales service?
Nico Grobler and his wife bought two Grafton Everest leather recliners from Tafelberg Furnishers. A few years in, the leather on the armrests and leg rests began to wear and scuff – prematurely, in their view. But because the chairs were well out of their two-year warranty, the couple’s first thought was to pay for custom covers to hide the damage. But Nico still felt they should have lasted longer so he emailed the manufacturer and copied Tafelberg.
The retailer had his back and ensured that the chairs were reupholstered by Grafton Everest at no cost. Tafelberg also provided the couple with loan chairs while that was happening.
Now that’s five-star after-sales service!
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