The answer depends entirely on which store you're standing in. Many major US retailers offer cashback at checkout for free. But three of the largest retail chains in America—Dollar General, Dollar Tree Inc. (which operates both Dollar Tree and Family Dollar), and Kroger Co.—charge fees of up to $3.50 per transaction. According to a 2024 Consumer Financial Protection Bureau (CFPB) report, these three companies collectively extract an estimated $90 million per year in cashback fees from American shoppers.¹

Here is exactly who charges, how much, and—critically—who doesn't.

Chains that charge for cashback

Kroger introduced cashback fees in 2019; Harris Teeter expanded the fee to more locations in January 2024. Dollar Tree Inc. acquired Family Dollar in 2015 and charges different fees under each banner. One notable exception: EBT card users are exempt from Kroger's cashback fees.¹

Chains where cashback is free

The $90 million question: why do some chains charge when it costs them pennies?

The CFPB report includes a striking finding on merchant economics. The actual transaction cost to a retailer for processing a cashback request is estimated at $0.05 to $0.19 for a typical $10–$40 withdrawal on a $20 purchase. For grocery stores, it can be as low as $0.01 to $0.02.¹

Compare that to Dollar General's $2.50 fee on the same $20 cashback request. The fee is roughly 12–50 times the actual cost of the transaction to the store. Across 20,000+ locations processing tens of millions of transactions, the margin is enormous—which is how three retail companies arrive at a combined $90 million annual revenue stream from a service that costs them almost nothing to provide.

The median cashback withdrawal at retail is just $20, according to Federal Reserve data analyzed in the CFPB report.¹ A $1.50 fee on a $20 withdrawal is a 7.5% surcharge on the cash accessed. A $2.50 fee is 12.5%. For comparison, the average out-of-network ATM costs $4.77 in combined fees—but the median ATM withdrawal is $100, making that a 4.8% effective rate. Dollar store cashback fees are, on a per-dollar-accessed basis, often more expensive than an ATM.

Who is most affected

Dollar stores don't locate randomly. The CFPB report documents that Dollar General and Dollar Tree Inc. deliberately concentrate their footprints in rural towns, low-income communities, and communities of color. 80% of Dollar General's stores are in towns with fewer than 20,000 residents. Rural communities are 10 times more likely to meet the definition of a banking desert—an area with no bank branch within 10 miles.¹

From 2018 to 2021, nearly 50% of all new US retail location openings were dollar stores. Research has found that dollar store openings are associated with the subsequent closure of nearby local grocery retailers, further concentrating market power in communities that already have limited alternatives.¹

The cumulative effect: the consumers with the fewest banking alternatives and the least discretionary income are paying the highest effective rates for access to their own cash. Lower-income households also tend to withdraw smaller amounts—$20 rather than $100—which means the fee represents a larger share of the cash actually received.

How cashback at checkout works

When you pay for a purchase with your debit card and request cashback, the store adds the cash amount to your transaction total. You swipe or tap for the combined amount; the cashier hands you bills from the register. From your bank's perspective it is a single debit—no different from any other purchase. From the store's perspective, they've received electronic funds and returned physical cash they were already holding.

This is why cashback at checkout is fundamentally different from an ATM. An ATM is a separate machine that dispenses cash for a fee—averaging $4.77 in combined charges (Bankrate, 2024).² Cashback is woven into a purchase transaction that's already happening. The marginal cost to the retailer is cents, not dollars. Whether they charge for it is a policy choice, not an economic necessity.

How to always find fee-free cashback

Given that major chains like Walmart (5,214 stores), CVS (7,500 stores), and Walgreens (8,600 stores) all offer cashback for free, fee-free options exist in most US markets. The challenge is knowing which stores near you offer it before you walk in—there is no universal sign or logo.

Cashtic is a real-time directory built specifically for this. It shows a map of nearby stores offering cashback, their current limits, and whether they charge a fee—so you can reach the free option rather than the expensive one. Other approaches:

• Google Maps: Search "cashback near me" and check the services listed on a store's Business Profile.
• Your bank's app: Some institutions include partner-store locators that surface cashback availability.
• USPS locations: The US Postal Service offers free cashback at many post office locations in $10 increments up to $50—an overlooked option in areas where retail alternatives are limited.
• Ask directly: "Do you offer cashback, and is there a fee?" Most cashiers know the answer immediately.

For store owners: the case for keeping cashback free

The data cuts both ways for retailers. The fact that Walmart, CVS, Walgreens, Target, and Albertsons—all competitors with similar or larger scale—offer cashback for free shows that the fee is not a structural necessity. It is a choice.

A store that offers fee-free cashback and makes it visible stands out in a market where shoppers have learned to check. With services like Cashtic surfacing fee structures alongside store locations, customers increasingly know which nearby options charge and which don't—and they choose accordingly. The impulse purchase that follows a cashback visit (NACS data puts the average at $4–$7) is captured by whichever store earns the visit.³

How Cashtic businesses set their fees

Cashtic connects people who need cash with nearby businesses that offer it—a model built on transparency. Every business on the platform sets its own commission during onboarding: a percentage of the cash amount, an optional flat fee, or both. Here's what that looks like across 60 active Cashtic businesses worldwide.

Commission rate distribution

The average commission across all Cashtic businesses is 2.5%. The majority charge nothing or a minimal rate, reflecting the platform's positioning as a low-cost ATM alternative.

Business types offering cashback

Cashtic is a global platform, so business types reflect local markets. Electronics shops, repair services, restaurants, and currency exchanges feature prominently alongside the traditional retail categories—reflecting where everyday P2P cash needs arise outside the US.

Flat fee adoption

73% of Cashtic businesses charge a flat fee on top of their percentage commission. Because businesses operate in different countries and currencies, flat fee amounts vary by local market—the key comparison is whether the total cost beats the nearest ATM, which users can see before agreeing to a transaction.

---

References

1. Consumer Financial Protection Bureau. Issue Spotlight: Cash-Back Fees. CFPB, 2024. https://www.consumerfinance.gov/data-research/research-reports/issue-spotlight-cash-back-fees/
2. Goldberg, Matthew. Bankrate's 2024 Checking Account and ATM Fee Survey. Bankrate, 2024. https://www.bankrate.com/banking/checking/checking-account-survey-2024/
3. NACS Magazine. Understanding Impulse Buys. NACS Magazine, May 2023. https://www.nacsmagazine.com/Issues/May-2023/Understanding-Impulse-Buys