As Americans, we receive lots of perks that appear to come at no cost—but there’s usually more to the story, whether that’s with digital services or everyday conveniences. Companies have some clever ways of getting something in return, such as your data, your attention, or indirect payment. Here are thirteen perks that many Americans assume cost nothing but actually come with strings attached. These “freebies” may not be as free as they seem.
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Loyalty Programs Sneaking Into Your Data
Joining a store’s loyalty program may get you some discounts, but those programs often track your shopping habits while you’re enjoying all those coupons. The company collects all sorts of personal info about you—including what you buy, when you shop & how much you spend. This data helps them adjust their marketing to get you to purchase more and this means that these “free” loyalty programs technically aren’t. A useful thing to remember is that if you can’t easily tell what the product is, then it’s probably because you’re the product.
“Free” Email Services Selling Your Info
Likewise, using a free email account feels like a great deal—until you realize that the company may be scanning your messages for advertising purposes. They might also share your data with other companies, which turns your private communication into a revenue source. Somehow, that free account doesn’t seem all that worth it anymore.
Public Events Funded by Higher Prices
Attending free concerts or festivals sponsored by big brands is always fun but you should be aware that the costs of these events are often passed on to consumers. For example, companies usually raise prices on their food or drinks to cover event expenses. Even though the event itself may not charge admission, you’re probably paying more at the checkout to make up for it.
“Free” Checking Accounts with Hidden Fees
Banks love to advertise “free” checking accounts, yet there are often hidden costs lurking beneath the surface, such as those around maintaining a minimum balance. If you’re not able to do this or fail to have enough monthly transactions, they’ll likely slap you with fees. You also have overdraft charges to worry about—even though it seems like you’re getting a no-cost account, the bank could be making money from fees you didn’t plan for.
“Free” Credit Card Rewards Funded by Interest and Fees
Similarly, many of us think of earning cash back & travel points with our credit card as getting free money, although the truth is that these rewards are funded by interest charges and late fees. These are paid by other people who carry a balance or miss payments. Merchants also charged processing fees—usually 2-3% per transaction—which may lead to higher prices for everyone, so there’s a hidden cost that’s spread out across consumers.
Complimentary Hotel Amenities Included in Room Rates
Checking into a hotel to find free toiletries, coffee & bottled water waiting in your room is such a great feeling, but guess what? You’ve already paid for those extras—hotels factor the cost of these amenities into your room rate, meaning that any fancy soap or cozy slippers aren’t truly on the house. They’re covered by the price you’ve paid to stay there, regardless of whether you use them or not.
Complimentary Work Perks Taxed as Income
It’s nice getting freebies from your employer like gym memberships and parking passes, although the fact that the IRS might consider these perks taxable income isn’t so great. That means the value of these benefits—say, a $200 monthly transit card—could be added to your earnings for tax purposes, so you could owe more than expected in taxes. This effectively reduces your take-home pay and you don’t have much of a choice in it.
“Free” Maintenance Checks When You Buy a Car
Many car dealerships include free maintenance checks when you purchase a vehicle but the cost of these services is usually built into the price you pay. During these check-ups, service centers may also recommend additional repairs or upgrades that aren’t covered and cost extra, such as a brake pad replacement. This makes any ‘complimentary’ maintenance work anything but free.
Complimentary Drinks in Casinos That Keep You Spending
Have you ever wondered why casinos give you free drinks while you’re playing? It’s not exactly a friendly gesture—alcohol usually lowers your inhibitions and impairs your judgment, which makes you more likely to gamble longer or place bigger bets than you planned. Casinos know this & use it to their advantage, so while your drinks don’t cost you upfront, they could make you spend more than you intended.
“Free” Upgrades That Come with Hidden Costs
Everyone loves a free upgrade, whether that’s a better rental car, a room with a view, or a seat in first class, but nobody likes the hidden expenses that come with them. You may have to pay increased taxes & resort fees, as well as higher fuel charges, because you’ve accepted an upgrade. It could also make you ineligible for certain discounts or special rates you originally had and that makes any seemingly generous offers a lot more expensive.
“Free” Shipping That Makes You Spend More
Online retailers often entice shoppers with free shipping when they spend over a certain amount, like $50 or $100—the goal is to encourage you to add extra items to your cart to qualify. You’ll likely purchase things you didn’t initially plan on buying and the cost of shipping is absorbed into the overall amount you’re spending. It’s not free if you’re paying more money to meet the threshold.
Complimentary In-Flight Wi-Fi Built into Ticket Prices
Airlines don’t exactly give away free Wi-Fi on flights, even on long trips, because the cost of providing internet access at 30,000 feet is high—so they factor that expense into your ticket price. You’re unlikely to pay a separate fee to log on during the flight since you’ve already covered it through a higher fare, making that complimentary connection actually part of what you’ve paid for your seat. It’s free at the point of use but no more than that.
“Free” App Trials That Auto-Renew into Subscriptions
Downloading an app with a free trial period seems harmless, yet you should be careful as many apps automatically enroll you in a paid subscription once the trial ends. If you forget to cancel before the trial is up, you’ll have to deal with paying some unexpected charges on your credit card, which can sometimes be a hundred dollars or so. Companies hope you’ll get hooked and not notice the transition to a paid service, so you have to keep an eye on things.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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