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Even the most fool-proof gifts are subject to returns. In fact, 19% of people plan on returning a gift after the holidays, according to a recent Consumer Reports poll. But returning items may not be as easy or affordable as in years past. Holiday headaches will last long after the season is over, as return shipping costs, restocking fees and other gotchas prevail.

Hassle-free return tactics
Because even the best gifts don’t always fare well with recipients, it’s best to be prepared before the purchase is made. Check privacy policies and terms of agreement, not just the returns section of a retailer’s site. Consumer Reports also recommends shoppers should:

• Get a receipt or gift receipt. Despite longer grace periods, retailers are becoming more insistent on a receipt in order to get a refund, and they’re more inclined to turn away customers without proof of purchase. Without a receipt, they may offer a store credit for the lowest price the item sold for.
• Keep packaging intact. Stores are likely to refuse a return if the packaging materials are open or discarded. Even a missing instruction manual, cords and cables or warranty card can give retailers reason to deny the return.
• Be wary online. Don’t just throw it in a box and mail it back. Online returns usually require a packing slip (typically included in any gift order), and a return authorization number. Call ahead to ensure that all requirements are being met.
• Don’t break seals or cut out UPC codes. Items like computer software, video games, CDs and DVDs aren’t generally returnable for another title after the seal has been broken. If an item comes with a rebate offer, make sure it works before removing the UPC code to redeem the rebate.

Don’t get stuck paying restocking fees
A restocking fee is a fee imposed on a consumer who returns an item. It covers the cost of processing the return, the costs associated with returning the item to the store’s shelves, and any lost revenue as a result of the store’s inability to sell that item as new. More products carry a restocking fee if the package has been opened, but if the item is defective before it’s used, the store should not charge a restocking fee.

Typically fees range from 10 to 15 percent of the purchase price. Items more likely to have restocking fees include camcorders, TVs, digital cameras, and computers; however Consumer Reports found some not-so-hot returns policies that harbor a variety of restocking fees.

The bottom line when it comes to restocking fees: Don’t open the package unless there is no possibility of a return.

For more information, visit consumerreports.org.

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This entry was posted on Wednesday, December 23rd, 2009 at 2:28 pm and is filed under Credit Cards. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.