Which Stores Let You Get Cash Back, and Which Ones Charge Fees?

Withdrawing cash at the checkout counter has become a lifeline for millions of Americans, particularly in regions where traditional banking options are scarce. As bank branches continue closing at rapid rates and out-of-network ATM charges skyrocket, retail locations have emerged as an accessible alternative for accessing cash. However, what once was a complimentary service is rapidly transforming—and consumers are starting to pay the price, literally.

The Rising Cost of Accessing Cash at Retail Locations

The landscape of consumer banking has fundamentally shifted. According to data from the Consumer Financial Protection Bureau (CFPB), Americans collectively spend over $90 million annually just to withdraw their own money at major retail chains. This staggering figure underscores a troubling trend: retailers are increasingly treating cash withdrawal services as revenue opportunities rather than customer conveniences.

The problem is particularly acute in underserved communities. “Many people living in small towns no longer have access to a local bank where they can withdraw money from their account for free,” explains CFPB Director Rohit Chopra. “This has created the competitive conditions for retailers to charge fees for cash back.” The result? Consumers with the fewest banking alternatives—often those with the lowest incomes—are paying the most for basic financial services.

Why Retailers Started Monetizing This Service

For retailers, the economic rationale is straightforward: cash withdrawal transactions carry processing costs. By imposing surcharges, stores can offset these operational expenses and create an additional revenue stream. However, this business model places disproportionate burden on vulnerable populations.

Dollar stores, in particular, have become primary drivers of this trend. These budget-oriented retailers typically operate in rural and economically disadvantaged neighborhoods where bank access is already limited. The CFPB’s investigation revealed that consumers lacking robust banking options are the ones most affected by these newly imposed fees.

Four Major Retailers Now Charging for Cash Withdrawals

Several prominent retail chains have joined the movement to charge consumers for obtaining cash at checkout:

Family Dollar operates one of the steeper fee structures. Customers attempting to withdraw cash in amounts under $50 face a $1.50 surcharge. For budget-conscious shoppers seeking modest amounts of cash, this fee can represent a surprisingly large percentage of the withdrawal.

Dollar Tree, which operates under the same parent company as Family Dollar, charges $1 for cash withdrawals under $50. While slightly lower than its sister company, this fee still represents a meaningful cost for consumers withdrawing small sums.

Dollar General has implemented variable fee structures across its locations. Mystery shopping conducted by the CFPB in 2022 documented fees ranging from $1 to $2.50 per transaction for withdrawals up to $40, depending on store location and other factors. Given that Dollar General has extensive presence in rural and low-income areas, these fees disproportionately impact consumers with limited access to banking services.

Kroger, the nation’s largest grocery retailer, has also adopted cash withdrawal fees, though with different structures across its operating divisions. At Harris Teeter stores, the fee is 75 cents for withdrawals of $100 or less, increasing to $3 for amounts between $100 and $200. Other Kroger-branded locations like Ralph’s and Fred Meyer charge 50 cents for up to $100 withdrawals and $3.50 for amounts between $100 and $300.

Retailers Where Cash Withdrawals Remain Fee-Free

For consumers seeking to avoid these surcharges, several major retailers continue offering complimentary cash withdrawal services:

• Walgreens: Up to $20 without charge
• Target: Up to $40 at no cost
• CVS: Up to $60 complimentary
• Walmart: Up to $100 free
• Albertsons: Up to $200 without fee

However, availability of these retailers varies significantly by geography. Many smaller towns and rural communities lack these store locations, leaving residents dependent on the dollar stores and other retailers that have begun charging fees—creating a catch-22 for underbanked Americans.

The transition to fee-based cash withdrawals represents a significant shift in retail dynamics and consumer financial access. While retailers justify these charges based on operational costs, the real impact falls hardest on those already facing the greatest financial constraints.