Which Stores Charge Fees for Cashback and Which Don't: Your Guide to Free Cash Withdrawals

Heading to the checkout and hoping to grab some cash back? What once seemed like a standard, no-cost convenience is increasingly coming with a price tag. As bank branches continue closing and ATM fees rise, many Americans are turning to retail stores to withdraw cash during shopping trips. However, stores doing cashback transactions have shifted dramatically over the past few years, with several major retailers now charging fees that can quickly add up.

According to research from the Consumer Financial Protection Bureau (CFPB), this trend is costing Americans big money. The agency found that over $90 million annually flows out of consumers’ pockets just to access their own cash at large retail locations. For people living in rural areas or small towns where bank access is limited, these fees represent a significant financial burden.

The Shift: Why Retailers Started Charging for Cashback

The economics driving this change are straightforward. Retailers cite transaction processing costs as the primary reason for imposing new charges on what used to be free service. But the real story reveals deeper inequality in America’s banking landscape.

“Many communities in rural areas no longer have local bank branches where residents can withdraw funds for free,” explained CFPB Director Rohit Chopra. “When banking options disappear, retailers gain leverage to monetize services that were previously offered at no cost.”

The burden falls heaviest on those who can least afford it. Low-income consumers and residents of underserved communities are disproportionately affected, since dollar stores and discount retailers—the chains most likely to impose these fees—operate primarily in rural and economically disadvantaged neighborhoods. What might seem like a small $1 or $2 fee becomes a much larger percentage of the cash amount for someone withdrawing just $20 or $30.

Stores That Now Charge for Cashback Transactions

If you’re looking to avoid paying extra at checkout, watch out for these retailers. The fees vary by store and withdrawal amount, and some locations may differ from the amounts listed below.

Family Dollar has implemented one of the steeper cashback fees among dollar store chains: $1.50 for withdrawals under $50. For someone grabbing a quick $20, that fee represents a 7.5% cost—significantly higher than a typical ATM charge.

Dollar Tree, which shares the same parent company as Family Dollar, charges $1 for cashback amounts under $50. While lower than its sister chain, it still represents a noticeable fee for small transactions.

Dollar General varies its approach by location. CFPB monitoring in 2022 found fees ranging from $1 to $2.50 per withdrawal for amounts up to $40, depending on the specific store location. Given that Dollar General operates thousands of locations in small towns nationwide, these charges particularly impact rural customers with limited alternatives.

Kroger, the nation’s largest grocery chain, also joined the trend but with a different fee structure. At Harris Teeter locations, the fee is 75 cents for withdrawals of $100 or less, jumping to $3 for amounts between $100 and $200. Other Kroger-owned stores such as Ralph’s and Fred Meyer charge 50 cents for up to $100 in cashback, with $3.50 charged for $100 to $300 withdrawals.

Retailers Still Offering Free Cashback Access

The good news: several major stores still allow cashback withdrawals without charging fees. This list gives you alternatives if you want to avoid fees entirely:

• Walgreens: Cashback available for purchases up to $20
• Target: Up to $40 in cashback per transaction
• CVS: Permits cashback withdrawals up to $60
• Walmart: Allows up to $100 in cashback
• Albertsons: Offers the highest free limit at $200

The catch? These retailers may not have convenient locations if you live in smaller towns or rural areas. The fee-free stores tend to cluster in suburban and urban markets, leaving residents of underserved communities with fewer options—and forcing many to choose between the stores charging cashback fees or going without convenient cash access altogether.

The growing divide between stores charging for cashback and those offering it free highlights a broader issue: as traditional banking infrastructure disappears from rural America, the remaining retail alternatives are increasingly monetizing basic financial services that wealthier, urban consumers often take for granted.