News & Trending Money News

Some Popular Retail Chains Found Guilty of Charging High Cashback Fees — Do You Shop at Any of Them?

A new report shows that Americans might be paying millions in fees just to access their own money.

dollar tree retail exterior
Updated Jan. 22, 2025
Fact checked

If you've ever opted for "cash back" at a large retail store, you might be paying extra to access your own money.

The Consumer Financial Protection Bureau (CFPB) released a new report revealing that Americans are paying tens of millions in fees when requesting "cash back" at large retail stores. 

As bank mergers, branch closures, and out-of-network ATM fees limit free cash access points, more retailers now charge fees for what was once a complimentary service — bad news for customers in communities where bank branches have closed.

At a time when getting ahead financially can seem more difficult than ever, these sneaky fees can really add up. Read on for more info about who's charging them and when you need to be on the lookout.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today”
  • Create your account (important!) by answering a few simple questions
  • Start enjoying your discounts and perks!

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $15 the first year with auto-renewal.

Become an AARP member now


The rise of cashback fees

Mihail Paying with cash

While many retailers previously offered cash back at no cost, some, particularly dollar store chains, are now imposing fees. 

According to Rohit Chopra, the CFPB director, this trend is particularly concerning in small towns where local bank branches are scarce, creating an environment that allows retailers to charge fees for access to cash.


Consumers are paying millions in fees

billtster/Adobe kroger food and pharmacy sign board outside store during day time

The CFPB's report shows that three major retail chains — Dollar General, Dollar Tree, Family Dollar, and Kroger — charge cashback fees, collectively collecting over $90 million annually. 

These fees often apply to low withdrawal amounts, such as $5 to $50, meaning consumers face disproportionately high charges for the small amounts they take out.

Impact on vulnerable communities

Adobe/billtster The Bank of the Ozarks with an American Flag and blue sky.

The report points out that cashback fees are more common in areas with fewer banking options, like small rural towns, communities of color, and low-income neighborhoods. Residents in these areas often rely more on cash and have fewer alternatives to avoid fees like this.

Borrow up to $50k to finally crush your debt

If you have thousands in debt and you’re barely making it paycheck to paycheck, you know how suffocating it is. Debt is always on your mind. It controls your life. And even if you make on-time payments, they’re so expensive that you have nothing left over.

A personal loan could help you get out of this situation and lift your monthly debt burden significantly. You could finally pay off all of your debt at once, get rid of the sky-high interest rates, and slash your debt load to one manageable monthly payment.

AmONE is a marketplace where you can find some of the best personal loans available. They match you with loans up to $50,000 with rates as low as 2.49%. That’s better than most credit cards. And easier than draining your bank account every month. Seeing what you qualify for doesn’t affect your credit score, and if you’re approved, you could get money the next day.

See what you can get


Bottom line

Stillfx/Adobe cash banknotes money

With the decline in free access to cash through traditional banks, many Americans have to turn to retail stores for withdrawals.

However, the new fees introduced by some retailers have made this convenience costly, especially for those in underserved communities. The CFPB's findings suggest the need for greater consumer awareness and potential policy responses to address these emerging costs.


Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details