The Consumer Financial Protection Bureau has determined that dollar stores and conventional supermarkets are benefitting from fees imposed on cash-back transactions.  It is estimated that the two major dollar stores and the Kroger Company collected over $90 million in fees during 2023.  The Bureau determined that the actual cost to the stores was marginal relative to the fee.  In many rural areas, Dollar stores represent the only source of cash in the absence of bank branches or ATMs, and especially for customers without bank accounts.  The report developed by the Bureau established that low-income earners were especially vulnerable to the fees and were disproportionately impacted.

In response to the report, Dollar General stated, “While not a financial institution, we provide cash-back options in more than 20,000 stores across the country as a service to customers who may not have convenient access to their primary financial institution.”  The statement continued, “These services may also help customers save money on fees compared to alternative non-retail options such as check cashing and ATM fees.”

Dollar Tree noted that cash-back transactions are completed according to a clearly disclosed fee.