Which Stores With Cash Back Charge Fees? A Consumer's Guide to Free vs Paid Options

The landscape of retail cash access is shifting rapidly. What was once a convenient and free service at most stores with cash back options is now becoming a paid transaction at major retailers. According to the Consumer Financial Protection Bureau (CFPB), Americans are losing approximately $90 million annually just to access their own money through retail checkouts. For people living in areas with limited banking infrastructure, this emerging trend creates a significant financial burden.

Why Retailers Are Starting to Charge for Cash Back

The shift toward charging fees reflects changing economics in retail operations. As traditional bank branches continue to close across America, consumers increasingly rely on retail stores as their primary source of cash. Retailers argue these fees help offset transaction processing costs and technology expenses. However, CFPB Director Rohit Chopra points out a troubling reality: “Many people living in small towns no longer have access to a local bank where they can withdraw money from their account for free. This has created competitive conditions for retailers to charge fees for cash back.”

The impact falls heaviest on specific populations. Lower-income consumers and those in rural areas—where dollar stores are typically concentrated—are disproportionately affected. These communities already struggle with limited banking options, making paid cash withdrawal services an additional financial hardship rather than a convenience.

Stores With Cash Back That Now Charge Fees

Family Dollar charges $1.50 for withdrawals under $50, making small cash amounts particularly expensive to access. Dollar Tree, owned by the same parent company, implements a $1 fee for similar transactions. Dollar General, which operates thousands of locations in underserved communities, charges between $1 and $2.50 per withdrawal depending on location, based on a 2022 CFPB investigation.

Even major grocers have joined this trend. Kroger’s subsidiary Harris Teeter charges 75 cents for up to $100 or $3 for $100-$200 withdrawals. Other Kroger brands like Ralph’s and Fred Meyer impose a 50-cent fee on smaller amounts but charge up to $3.50 for larger withdrawals.

Free Alternatives: Stores With Cash Back at No Cost

Not all retailers have adopted fee-based models. Walmart remains a strong option, offering cash back at no charge for up to $100. Target provides cash back at no fee for amounts under $40, while Albertsons allows $200 in free cash back. CVS and Walgreens, while more limited in amounts ($60 and $20 respectively), still offer free cash access.

However, availability matters. These free alternatives may not exist in smaller towns that already struggle with adequate banking services, which is why some consumers have no choice but to pay the new fees.

What This Means for Your Wallet

The shift toward cash back fees reveals a broader financial reality: traditional banking accessibility is becoming a luxury in many American communities. Before making purchases at stores with cash back options, check your destination’s specific policies. In areas without free alternatives, even small fees can accumulate into significant yearly expenses, especially for those who cannot maintain minimum balances at traditional banks.