Kroger, other retailers charging fees for 'cash back' at registers
FILE-A customer walks into a Kroger grocery store in Houston, Texas. (Photo by Brandon Bell/Getty Images)
Kroger, Dollar General and Dollar Tree are charging consumer fees when they withdraw cash at registers when using their debit or prepaid cards.
The Consumer Financial Protection Bureau (CFPB) revealed their findings in a larger report observing the business practices of eight major retailers. The agency assessed these retailers' "cash back" fee policies because there was not public data available regarding "cash back" costs.
According to the report, Kroger’s fees for customers to receive "cash back" when using their debit or prepaid cards was $0.75 for receiving less than $100 and $3 for amounts over $100 at Harris Teeter stores. And at Kroger’s other brands, the retailer charges $0.50 for less than $100 and $3.50 for amounts over $100.
Dollar Tree charges consumers a $1 fee to get "cash back" during transactions. The CFPB noted that the retailer also owns Family Dollar, where customers are charged a $1.50 fee.
Dollar General charges a $1 to $2.50 fee to customers to get money at the register, depending on the amount and other factors.
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The CFPB said the total amount the three retailers charge in "cash back" costs is an estimated $90 million a year.
Separately, the agency reported Albertsons, Walmart, Target, Walgreens, and CVS — the other five retailers whose "cash back" practices are examined — allow consumers to withdraw cash during transactions without incurring a charge.
Citing data from a survey, the CFPB reported that cash withdrawals at retail locations from 2017 to 2022 accounted for 17% of all transactions by which consumers got money from their checking account, savings account, or prepaid cards.