A growing number of businesses have begun imposing fees on customers who use credit cards for payments, a practice that has sparked questions about its legality and underlying causes. Consumers report encountering such charges at various establishments, including car repair shops, gyms, restaurants, and gas stations, with fees typically ranging from 1.5% to 3% of the transaction amount.

Under federal law, merchants are permitted to impose surcharges on credit card transactions, although some states have attempted to restrict or ban the practice. California, for example, enacted legislation against credit card surcharges, but it was later deemed unconstitutional and is no longer enforced. Previously, major credit card networks like Visa and MasterCard banned merchants from applying such fees, but those restrictions were lifted in 2013 following a lawsuit settlement.

These surcharges are generally not profits for credit card issuers but rather a means for merchants to recover costs associated with credit card acceptance. When a customer pays with a credit card, merchants incur interchange fees paid to the card-issuing bank, as well as charges from the card networks and payment processors. These fees collectively average between 1.5% and 3.5% of each transaction.

Consumers looking to avoid these surcharges can opt to pay with cash, prepaid cards, or debit cards, as federal regulations prohibit surcharges on these payment methods. Alternatively, shoppers may seek out businesses that do not add extra fees for credit card payments.

Separately, retirees navigating withdrawal rules from Individual Retirement Accounts (IRAs) are advised to seek professional tax guidance due to the complexity of retirement account regulations. Withdrawals from traditional IRAs are typically subject to income tax and must begin by age 73 to avoid penalties. Early withdrawals, generally those made before age 59½, may also incur tax penalties unless certain exceptions apply. Roth IRAs differ in that contributions are made with after-tax dollars, and qualified withdrawals during retirement are usually tax-free, with no mandatory distribution age.

In cases where an individual inherits an IRA, specific rules govern when withdrawals must commence and how taxes apply, adding further complexity to managing such accounts.

Finally, individuals seeking safe and accessible options for storing funds while generating income may consider FDIC-insured savings accounts at online banks, which currently offer interest rates between 3% and 4%, substantially higher than the rates available from many traditional brick-and-mortar institutions. These accounts provide liquidity alongside competitive yields, making them a viable choice for retirees and others needing regular disbursements without sacrificing earnings.