Which Stores That Do Cash Back Now Charge Fees, and Which Ones Still Offer It Free

Getting cash out at the checkout counter used to be one of those taken-for-granted conveniences when you’re shopping. But for millions of people—especially those living in communities where bank branches have shut down or are few and far between—it’s become an essential financial lifeline. Now, the landscape is shifting. As traditional banks disappear from small towns and out-of-network ATM fees skyrocket, more retailers have stepped up to fill the gap. Yet increasingly, stores that do cash back are starting to charge for the service, turning what was once free into a new line item on your receipt.

The transformation is real and concerning. According to research from the Consumer Financial Protection Bureau (CFPB), Americans are collectively paying over $90 million each year just to access their own money at large retail chains. This wasn’t always the norm—dollar stores and supermarkets once offered cash back as a competitive advantage to attract shoppers. But those days appear to be ending.

The Real Reason Retailers Are Starting to Charge for Cash Back Services

Why the sudden shift? The answer lies in a perfect storm of economic pressures and changing banking geography. CFPB Director Rohit Chopra explained the situation bluntly: “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 the competitive conditions for retailers to charge fees for cash back.”

For retailers, the logic is straightforward—processing cash transactions costs money. Handling, storing, and securing physical currency creates overhead that didn’t exist when they were offering the service as a loss leader. From their perspective, charging a small fee helps offset these operational expenses.

But there’s an equity problem embedded in this trend. The CFPB’s analysis found that lower-income consumers and people with fewer banking alternatives are being hit hardest. Dollar stores, which often cluster in rural or economically disadvantaged neighborhoods, have been among the first to implement these fees. For someone trying to withdraw $20 in a community with no local bank, a $1 or $1.50 fee represents a significant financial burden—representing 5-7.5% of the amount they’re trying to access.

Family Dollar and Dollar Tree: How Dollar Store Chains Monetized Cash Back

Two of the nation’s largest dollar store operators have embraced this fee structure. Family Dollar now charges $1.50 for cash back transactions under $50. Since many of their customers need small amounts of cash for daily expenses, this fee can consume a notable percentage of the withdrawal.

Dollar Tree, which shares the same parent company as Family Dollar, has taken a slightly different approach by charging $1 for similar transactions under $50. While the dollar amount is lower, the percentage impact is comparable for small withdrawals.

These fees fundamentally change the economics for budget-conscious shoppers who have limited alternatives in their area. What used to be a free service has become yet another cost they must factor into their shopping trips.

Dollar General and Kroger: Cash Back Fees Vary by Location and Amount

Dollar General, the nation’s largest retailer by store count, has also joined the ranks of retailers charging for cash back. CFPB mystery shopping conducted in 2022 found that fees could range from $1 to $2.50 per transaction, depending on the location and the amount withdrawn (typically up to $40). This variable pricing structure means consumers don’t always know what they’ll pay until they reach the register.

Given that Dollar General stores are strategically located in rural and underserved communities where banking access is already limited, these fees hit a particularly vulnerable population.

Kroger, the largest traditional grocery chain in America, has also introduced cash back fees, though the structure differs slightly from dollar stores. At Kroger’s Harris Teeter locations, shoppers pay 75 cents for withdrawals of $100 or less and $3 for amounts between $100 and $200. At other Kroger banners like Ralph’s and Fred Meyer, the fee is 50 cents for up to $100 and $3.50 for withdrawals of $100 to $300. While these fees are proportionally lower than dollar store charges on smaller withdrawals, they still represent an additional cost to access one’s own money.

Five Major Retailers Where You Can Get Cash Back Without Paying a Fee

If avoiding these charges is a priority, several large retailers still offer cash back at no cost—though availability varies by location:

• Walgreens allows up to $20 in free cash back
• Target offers up to $40 without fees
• CVS permits up to $60 in free withdrawals
• Walmart enables up to $100 in free cash back
• Albertsons allows up to $200 without charges

The catch: these alternatives may not be conveniently located in smaller towns or rural communities already struggling with banking access. Urban shoppers might find it easy to choose a no-fee option, but those in underserved areas often don’t have the luxury of selection.

How to Navigate This Changing Retail Landscape

The emergence of cash back fees reflects a broader financial divide in America. As traditional banking infrastructure retreats from less profitable markets, retailers are filling the void—but at a price. For consumers, the strategy is straightforward: plan ahead, know which stores charge what, and use fee-free options when available. If you’re in a community where fee-free alternatives don’t exist, consider whether the cost of accessing cash at these stores that do cash back might justify getting a bank account with online access or using alternative financial services when possible.

The real solution, however, requires policy attention. Until banking access is restored to underserved communities, consumers will continue to pay what amounts to a tax on being poor.