Hidden Cash-Back Fees at Dollar Stores and Kroger: How They're Costing You Millions

If you've ever chosen to get "cash-back" during a debit purchase at Dollar General, Dollar Tree, or Kroger, you might have paid an extra fee without realizing it. According to the Consumer Financial Protection Bureau (CFPB), these stores collect over $90 million in fees each year when customers request cash back.

These three major brands charge fees for cash-back services, even though other stores provide the service for free, according to the CFPB's report.

The CFPB found that the fees are highest at Dollar General and Dollar Tree for small withdrawal amounts—$1 or more if you're taking out less than $50. Kroger, the largest grocery chain in the country, charges 75 cents for withdrawals of $100 or less.

All merchants pay a small fee when offering cash-back with a debit card—usually between 5 cents and 20 cents depending on the amount. However, Dollar Tree, Dollar General, and Kroger are the only companies in this study that pass that fee directly to customers.

The report highlights that stores like Walmart, Target, CVS, and Walgreens offer cash-back services without any additional charge. The CFPB believes charging for cash access is unfair to customers.

"While digital payments are becoming more common, access to cash remains important for a strong financial system," the report explains. "Some retailers offer cash-back as a free service to help their customers, but others may be taking advantage of the situation by charging fees."

However, Dollar Tree defends the fee, saying it is necessary.

"Like many stores, Dollar Tree and Family Dollar offer cash-back as a convenience for our customers," a company spokesperson stated. "Customers who use this service pay a clearly stated fee, which helps us cover the costs of providing it."