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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.

By Laura Ratliff

Edited by Lauren Gordon

Updated April 10, 2025

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.

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The rise of cashback fees

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.

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Consumers are paying millions in fees

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

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.

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Bottom line

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.

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Laura Ratliff

Writer and FinanceBuzz editor Laura Ratliff is based in New York. Her writing expertise spans numerous topics, including insurance, travel, food and drink, and reported pieces covering political and human rights issues. She has previously worked at Architectural Digest, Bloomberg News, and Condé Nast Traveler.

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

The rise of cashback fees

Consumers are paying millions in fees

Impact on vulnerable communities

Resolve $10,000 or more of your debt

Bottom line

Lucrative, Flat-Rate Cash Rewards

Wells Fargo Active Cash® Card

Wells Fargo Active Cash® Card

Current Offer

Annual Fee

Rewards Rate

Benefits

Drawbacks

Learn how to make an extra $200

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Wells Fargo Active Cash^® Card

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