Which Cash Back Stores Charge Fees and Which Offer Free Withdrawals?

When you need quick cash while shopping, turning to retail stores for cash back has become increasingly common—especially in communities where traditional banking options have disappeared. But here’s what many consumers are discovering: not all cash back stores treat this service the same way anymore. Some retailers are now charging fees for what used to be a free convenience, creating real financial consequences for everyday shoppers.

The shift is dramatic. According to the Consumer Financial Protection Bureau (CFPB), Americans currently pay over $90 million annually just to access their own money through cash back services at major retail chains. For low-income households and residents in rural areas where bank branches have closed, these fees represent a significant burden—sometimes costing more than the transaction value itself.

Why Retail Locations Are Now Charging for Cash Back Services

The story behind these fees reveals deeper changes in American banking. As traditional bank branches continue to close and out-of-network ATM fees rise, people increasingly rely on retail locations as their primary cash access point. This shift created what economists call “competitive conditions”—essentially giving retailers leverage to monetize a service they previously offered free.

From a business perspective, cash back transactions cost retailers money. Processing, security, and cash handling all add expenses. But the impact falls hardest on those who can least afford it. The CFPB found that dollar store chains—which operate primarily in underserved communities—have become primary architects of this fee structure. These stores are often the only convenient cash access point for residents in small towns or low-income neighborhoods.

“Many people in rural communities no longer have access to a local bank,” CFPB Director Rohit Chopra explained. “This has created conditions where retailers can charge fees for cash access.” The data backs this up: consumers with lower incomes face disproportionate impacts because they have fewer banking alternatives.

Cash Back Stores That Now Charge Fees: What You’ll Pay

If you shop at dollar stores and drugstores, you may already be paying these charges. Here’s what the current fee landscape looks like:

Family Dollar implemented a $1.50 fee for cash back under $50. Given that many shoppers withdraw small amounts, this fee can represent a substantial percentage of their withdrawal.

Dollar Tree, owned by the same parent company as Family Dollar, charges $1 for cash back transactions under $50—slightly lower but following the same pattern.

Dollar General imposes between $1 and $2.50 per withdrawal up to $40, depending on location. CFPB’s 2022 mystery shopping investigation documented these variable fees across different stores.

Kroger offers a tiered approach. At Harris Teeter locations, the fee is 75 cents for withdrawals up to $100 and $3 for $100-$200 withdrawals. Other Kroger banners (Ralph’s, Fred Meyer) charge 50 cents for up to $100 cash back and $3.50 for $100-$300 withdrawals.

Where to Still Find Free Cash Back Services

If avoiding fees is your priority, several major chains still offer cash back without extra charges:

• Walgreens: Up to $20 free
• Target: Up to $40 free
• CVS: Up to $60 free
• Walmart: Up to $100 free
• Albertsons: Up to $200 free

The limitation, however, is availability. These fee-free cash back stores may not exist in smaller towns or rural areas—which is precisely where residents are most dependent on nearby retail locations for cash access. This creates a geographic divide in financial accessibility.

The Bottom Line for Consumers

The proliferation of cash back fees at retail locations reflects a broader transformation in American banking. As traditional infrastructure disappears from underserved areas, retailers fill the gap—but increasingly at a cost. Understanding which cash back stores charge fees and which don’t is now essential knowledge for managing your finances effectively, especially if you live outside major urban centers.