Which Cashback Stores Are Charging Fees? Here's What You Need to Know

The convenience of getting cash back at retail cashback stores while shopping has long been a lifeline for many Americans, especially in communities with limited bank access. However, the landscape is rapidly changing as major retailers begin imposing fees for what was once a complimentary service. Understanding which stores charge and which don’t can help you keep more money in your pocket.

The Rise of Cashback Fees at Retail Stores

For decades, retailers offered free cash back as a customer convenience. But according to a report from the Consumer Financial Protection Bureau (CFPB), this era is ending. Americans are now paying over $90 million annually just to access their own money at large retail chains.

“While retail chains had long provided cash back on debit card purchases for free, we’re now seeing dollar store chains and other retailers charging fees for this service,” noted CFPB Director Rohit Chopra. The shift is driven by several factors: processing costs, inventory management, and the simple fact that retailers can now monetize a service consumers depend on. As traditional bank branches close and out-of-network ATM fees climb, more people have turned to retail stores as their primary cash access point—and retailers have noticed.

Who’s Bearing the Cost? The Real Impact on Consumers

The burden of these new fees falls disproportionately on those who can least afford it. The CFPB’s analysis shows that lower-income consumers and those living in underserved communities are most affected, since dollar stores and discounted retailers typically locate in rural or economically disadvantaged areas where banking options are already scarce.

A withdrawal of $20 with a $1 fee represents a 5% cost—far more than typical ATM fees. For families living paycheck to paycheck, these charges add up quickly. “Many people in small towns no longer have access to a local bank where they can withdraw money for free,” Chopra explained. “This has created conditions where retailers can charge fees with minimal consumer choice.”

Four Major Retailers Now Charging for Cashback Services

The following stores have implemented cashback fees:

Family Dollar and Dollar Tree Lead the Fee Trend

Family Dollar charges $1.50 for cash back on amounts under $50. Given that customers often need small amounts of cash, this represents a significant percentage hit on their withdrawal.

Dollar Tree, owned by the same parent company, charges $1 for cash back under $50. This move reflects a coordinated strategy to monetize previously free services across the discount retail sector.

Warehouse and Grocery Chains Follow Suit

Dollar General has also joined the trend. According to CFPB mystery shopping conducted in 2022, the chain charged between $1 and $2.50 per withdrawal for amounts up to $40, though fees vary by location. Given Dollar General’s heavy presence in rural and low-income neighborhoods, the impact on its customer base is particularly significant.

Kroger, America’s largest grocery chain, has introduced a tiered fee structure. At Harris Teeter locations, the fee is 75 cents for cash back up to $100, and $3 for withdrawals between $100 and $200. At other Kroger brands like Ralph’s and Fred Meyer, customers pay 50 cents for cash back up to $100, and $3.50 for withdrawals between $100 and $300. Though the percentages are lower than discount retailers, the fees still add up for regular users.

Where You Can Still Get Free Cashback

Not all retailers have adopted fees. If you’re looking to avoid charges, these stores still offer complimentary cash back:

• Walgreens: Up to $20 with no fee
• Target: Up to $40 free cash back
• CVS: Up to $60 without charges
• Walmart: Up to $100 free cash back
• Albertsons: Up to $200 complimentary cash back

The catch? These fee-free cashback stores may not be available in smaller communities that struggle with bank accessibility in the first place. Rural consumers and those in underserved urban areas may have no realistic free options.

Making Smart Choices at Cashback Stores

The shift toward cashback fees at major retailers highlights a growing financial equity issue. As traditional banking infrastructure shrinks, retail stores are increasingly filling the gap—but at a cost.

To protect yourself, plan your cash withdrawals strategically. Check whether your nearby stores offer free services and consolidate withdrawals into fewer, larger transactions where possible. If you use fee-charging cashback stores regularly, track how much these charges amount to annually—it may motivate you to seek banking solutions like community banks or credit unions that offer better access.

The CFPB’s findings suggest that policymakers may need to address this gap in the near future. Until then, being informed about which cashback stores charge and which don’t remains your best defense against unnecessary fees.