Which Retail Stores Charge Cash Back Fees and Which Offer Free Cash Back Access

The landscape of cash back services at retail stores is rapidly shifting. What was once a universal free convenience has become increasingly fragmented, with some of America’s largest retailers now implementing charges while others continue offering free access. Understanding which stores that do cash back for free and which impose fees can help you make smarter shopping and cash withdrawal decisions, especially if you’re in an area where traditional banking options are limited.

Why Retailers Are Implementing Cash Back Charges

The rise of cash back fees represents a significant change in retail banking dynamics. According to the Consumer Financial Protection Bureau (CFPB), Americans are paying over $90 million annually in fees just to access their own money at major retail chains. As traditional bank branches close in rural and underserved communities, retail stores have become essential cash withdrawal points for millions of consumers.

CFPB Director Rohit Chopra explained the underlying economic pressure: “While retail chains had long provided cash back on debit card purchases for free, chains operating in smaller towns are now charging fees because many people no longer have access to a local bank. This has created conditions where retailers can monetize services that were previously complimentary.”

For retailers, these fees offset transaction processing costs and operating expenses. However, the burden falls disproportionately on low-income and rural consumers who depend on these services most. The CFPB’s investigation found that dollar store chains and discount retailers—which are typically located in underbanked communities—have been particularly aggressive in rolling out these new charges.

Major Stores Charging Fees for Cash Back Transactions

Several major retail chains have introduced cash back fees, turning what was once a free banking alternative into a paid service. Here’s what you’ll pay:

Family Dollar charges $1.50 for cash back transactions under $50. Given that many customers need small amounts, this fee can represent a significant percentage of their withdrawal.

Dollar Tree, owned by the same parent company as Family Dollar, has implemented a $1 fee for cash back under $50. This move reflects a broader strategy among discount retailers to generate revenue from previously free services.

Dollar General ranges from $1 to $2.50 per withdrawal of up to $40, depending on location. Since Dollar General operates nearly 19,000 locations primarily in rural areas, these fees impact vulnerable populations significantly.

Kroger, the largest grocery chain in the U.S., has also begun charging for cash back. At Harris Teeter locations, the fee is 75 cents for withdrawals up to $100 and $3 for $100-$200 withdrawals. Other Kroger-owned brands like Ralph’s and Fred Meyer charge 50 cents for up to $100 and $3.50 for $100-$300 withdrawals.

Stores That Still Offer Free Cash Back Without Charges

If you want to avoid fees entirely, several major retailers continue offering free cash back access:

• Walgreens provides up to $20 free cash back
• Target allows up to $40 free cash back
• CVS offers up to $60 free cash back
• Walmart provides up to $100 free cash back
• Albertsons offers the highest limit at up to $200 free cash back

However, these stores may not be conveniently located in all communities, particularly in rural and small-town areas where cash access is most critical.

What This Means for Consumer Banking Access

The emergence of cash back fees highlights a broader crisis in banking accessibility. As ATM networks shrink and bank branches close, retail stores have become lifelines for cash transactions. Yet by introducing charges, these retailers are essentially creating barriers to financial access for the populations that need it most.

Consumers in underserved areas now face a difficult choice: pay fees at convenience locations or travel further to find free alternatives. For low-income families, these seemingly small charges accumulate into significant annual expenses. The average consumer paying $90 million annually in aggregate fees underscores how widespread this problem has become.

When shopping, consider combining your purchases at stores that offer free cash back to minimize trips and transaction fees. If you have access to multiple options, prioritize retailers still providing free cash back services to preserve your financial resources.