Many retailers offer a cash-back option to consumers who pay for purchases with a debit or pre-paid card.
But levying a fee for the service may be “exploiting” certain customers, especially those who live in so-called banking deserts without easy access to a bank branch or free cash withdrawals, according to a CFPB analysis issued Tuesday.
That dynamic tends to disproportionately impact rural communities, lower earners and people of color, CFPB said.
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Three of the nation’s largest retailers — Dollar General, Dollar Tree and Kroger — charge fees to customers who ask for “[cash](https://www.cnbc.com/2024/05/26/when-paying-with-cash-can-be-better-than-credit-card.html) back” at check-out, amounting to more than [$90 million a year](https://www.consumerfinance.gov/data-research/research-reports/issue-spotlight-cash-back-fees/), according to the Consumer Financial Protection Bureau.
Many retailers offer a cash-back option to consumers who pay for purchases with a debit or pre-paid card.
But levying a fee for the service may be “exploiting” certain customers, especially those who live in so-called banking deserts without easy access to a bank branch or free cash withdrawals, according to a CFPB analysis issued Tuesday.
That dynamic tends to disproportionately impact rural communities, lower earners and people of color, CFPB said.
Not all retailers charge cash-back fees, which can range from $0.50 to upwards of $3 per transaction, according to the agency, which has [cracked down](https://www.cnbc.com/2024/07/19/what-cfpbs-rule-on-paycheck-advance-programs-means-for-workers.html) on financial institutions in recent years for charging so-called “junk fees.”
More: [https://www.cnbc.com/2024/08/27/dollar-general-dollar-tree-and-kroger-charge-cash-back-fees-cfpb.html](https://www.cnbc.com/2024/08/27/dollar-general-dollar-tree-and-kroger-charge-cash-back-fees-cfpb.html)
“Exploitation” is a bit much. These companies don’t have to offer cash back at all. Being an ATM to a rural community isn’t their job.
That being said, I think they should do it for free since it encourages customers to shop in your store.
Our Kroger literally has 5 banks in the same parking lot, and people still get cash back. They just don’t apparently care.