Which Retailers Charge for Cash Back and Where to Get It Free?

The landscape of cash back services at checkout has shifted dramatically. What once felt like a small perk now comes with unexpected costs at major store chains, while other retailers continue offering this service without charge. Understanding who do cash back for free versus who charges fees has become essential knowledge for budget-conscious shoppers.

The Rising Cost of Convenience

Over recent years, a growing number of large retail chains have begun imposing fees on cash back transactions. The Consumer Financial Protection Bureau (CFPB) reports that Americans spend more than $90 million annually just to access their own money through retail checkout services. This trend disproportionately impacts residents in underserved communities, where local bank branches have closed and ATM networks remain sparse. For low-income shoppers with limited banking options, these seemingly small fees add up quickly.

CFPB Director Rohit Chopra noted that while retailers previously offered cash back at no cost, dollar store chains and other major retailers now view this as a revenue opportunity. The economic logic is straightforward: as traditional banking infrastructure disappears from rural and small-town America, retailers have captured a captive customer base with limited alternatives.

Four Major Retailers Now Charging Fees

Family Dollar

Family Dollar charges $1.50 for cash back withdrawals under $50. For customers pulling small amounts of cash—say $20 or $30—this fee represents a significant percentage of the transaction.

Dollar Tree

Operating under the same parent company as Family Dollar, Dollar Tree implements a $1 fee for cash back under $50. The lower fee structure hasn’t prevented criticism from consumer advocates.

Dollar General

Dollar General’s approach varies by location. CFPB mystery shopping in 2022 documented fees ranging from $1 to $2.50 per withdrawal, with limits around $40. Given that Dollar General saturates rural markets, these fees create obstacles for precisely the populations that depend most on this service.

Kroger

The nation’s largest grocery chain has introduced tiered fees at its subsidiaries. Harris Teeter locations charge 75 cents for withdrawals up to $100 and $3 for $100-$200 transactions. Ralph’s and Fred Meyer charge 50 cents for up to $100 and $3.50 for $100-$300 withdrawals.

Where Cash Back Remains Free

Fortunately, several major retailers still provide this service without fees:

• Walmart: Up to $200 cash back
• Albertsons: Up to $200 cash back
• Target: Up to $40 cash back
• CVS: Up to $60 cash back
• Walgreens: Up to $20 cash back

The catch: these fee-free alternatives may not exist in smaller communities where dollar stores dominate the retail landscape.

What This Means for Your Wallet

For consumers in areas with robust retail presence, avoiding fees is straightforward—choose Walmart or Albertsons over dollar store chains. But for residents in rural or economically disadvantaged areas, cash back fees represent a hidden tax on their financial lives. When your nearest bank closed years ago and your options are limited to local dollar stores, paying $1 or $2.50 every time you need cash becomes an unavoidable cost of living.

The broader question remains: should access to one’s own money come with a price tag?