Retail Stores Charging for Cash Back: Which Retailers Impose Fees and Which Offer Free Withdrawals

The Growing Cash Back Fee Problem

In an era when traditional banking accessibility continues to decline, many consumers have relied on retail checkout cash back services as a convenient alternative to ATMs. However, this longtime free service is rapidly disappearing. Major retail chains are increasingly implementing charges for cash back transactions, creating unexpected financial burdens for shoppers—particularly those in underserved communities.

According to the Consumer Financial Protection Bureau (CFPB), Americans are currently spending over $90 million annually on cash back fees at large retail stores. As CFPB Director Rohit Chopra noted, the closure of bank branches and rising out-of-network ATM fees have forced many consumers to seek alternative withdrawal methods. For retailers, these fees represent an opportunity to offset transaction processing costs, but for consumers with limited banking options, they represent another expense.

Why This Trend Is Accelerating

The shift reflects broader market dynamics. Small towns and low-income neighborhoods have seen bank closures accelerate, leaving residents without nearby financial institutions. Dollar stores and other retailers operating in these communities have recognized this gap and begun monetizing services that were once complimentary. The CFPB’s research indicates that lower-income consumers and those with fewer banking choices bear the disproportionate impact of these emerging fees.

Stores That Charge Cash Back Fees

Family Dollar leads the charge with a $1.50 fee for cash back withdrawals under $50, making even modest cash requests costly for budget-conscious shoppers.

Dollar Tree, operated by the same parent company, charges $1 per cash back transaction under $50—a slightly lower rate but still a notable expense for small withdrawals.

Dollar General varies its approach by location, with CFPB mystery shopping revealing fees ranging from $1 to $2.50 per withdrawal up to $40. Given the chain’s heavy presence in rural and low-income areas, this policy particularly affects vulnerable consumer segments.

Kroger’s subsidiary brands take a tiered approach. Harris Teeter charges 75 cents for up to $100 cash back and $3 for $100–$200 withdrawals. Other Kroger banners like Ralph’s and Fred Meyer charge 50 cents for amounts up to $100 and $3.50 for $100–$300 withdrawals.

Retail Locations Still Offering Free Cash Back

For consumers seeking to avoid these charges, several major retailers that do cash back without fees remain available:

• Walgreens: Up to $20 free
• Target: Up to $40 free
• CVS: Up to $60 free
• Walmart: Up to $100 free
• Albertsons: Up to $200 free

The catch: these fee-free retailers may not operate in smaller towns where cash back access is most critically needed, leaving rural and underserved community residents with limited options regardless.

The evolution of cash back policies illustrates how retail stores adjust their service models in response to changing financial landscapes—sometimes in ways that challenge consumers already facing limited banking access.