“Varney & Co.” Stuart Varney argues that Kamala Harris is deliberately ignoring the impact of massive government spending on inflation.
The CFPB said Tuesday that Kroger Co. and two major discount retailers are charging consumers fees when they withdraw cash in transactions using their debit or prepaid cards.
The federal agency said it observed that Kroger Co., Dollar General and Dollar Tree Inc. were charging “refund” fees to customers of their respective brands as part of a broader CFPB report examining the practices of eight major retailers.
The CFPB said it analyzed the “refund” fee policies of eight retailers “to establish a baseline” because there was a lack of publicly available data on “refund” fees.
A Kroger grocery store in Dallas, Texas, U.S., on Wednesday, Feb. 21, 2024. The U.S. Federal Trade Commission and a group of states are set to file a lawsuit as early as next week to block a merger between supermarket giants Kroger Co. and Albertsons Cos., according to (Shelby Tauber/Bloomberg via Getty Images / Getty Images)
According to the CFPB, Kroger Co. charged customers who wanted to get cash back on transactions made with its debit or prepaid cards 75 cents for purchases under $100 and $3 for purchases over $100 at Harris Teeter stores. For its other brands, the CFPB found, the fee was 50 cents for purchases under $100 and $3.50 for purchases over $100.
ATM FEES REACH RECORD HIGH IN US – HERE ARE THE CITIES WHERE YOU’LL PAY THE MOST
At the same time, Dollar General charges between $1 and $2.50 to withdraw cash at the register, “depending on the amount and other variables,” the agency said.
The CFPB said customers who withdraw cash at Dollar Tree must pay a $1 fee for the service. The company also owns Family Dollar, where the agency set the fee at $1.50.
The collective amount charged in “cash refund” fees by the three companies amounts to about $90 million a year, according to the CFPB.
A Dollar General store in Kingston, New York, U.S., on Thursday, Nov. 30, 2023. Dollar General Corp. is scheduled to report earnings on Dec. 7. Photographer: Angus Mordant/Bloomberg via Getty Images (Angus Mordant/Bloomberg via Getty Images / Getty Images)
“While not a financial institution, Dollar General offers cash back options at more than 20,000 stores nationwide as a service to customers who may not have access to their primary financial institution,” Dollar General told FOX Business. “These services can also help customers save money on fees compared to alternative, non-retail options, such as check cashing locations or ATM fees.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
FOX Business has also reached out to Kroger and Dollar Tree for comment.
The CFPB reported that Albertsons, Walmart, Target, Walgreens and CVS — the five other companies whose cash-back practices were examined — allow customers to withdraw cash during transactions without incurring fees, the agency said.
A sign is displayed in front of a Dollar Tree and Family Dollar store on March 13, 2024 in Rio Vista, California. Dollar Tree has announced plans to close nearly 1,000 of its underperforming Family Dollar stores across the United States. (Getty Images / Getty Images)
The agency also noted that it had “observed that many local independent grocers offer this service, but do not charge a fee” for the cash back. People can also get cash back by using their debit cards at U.S. Postal Services locations.
The refund fees charged by some retailers come “against a backdrop of bank mergers, branch closures and the prevalence of out-of-network ATM fees that have reduced the availability of free cash access points for consumers,” the CFPB said. The agency suggested that the “marginal cost” merchants receive for processing “refund” transactions may be very small “compared to the much higher fees these retailers charge consumers.”
“Many people living in small towns no longer have access to a local bank where they can withdraw money from their account for free. This has created a competitive environment for retailers to charge fees for cash refunds,” said CFPB Director Rohit Chopra.
CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS
Getting cash back from stores is one of the most popular ways to get money back.
According to the CFPB, people used point-of-sale transactions to withdraw money from their checking account, savings account or prepaid card 17% of the time between 2017 and 2022.
ATMs, meanwhile, accounted for 61% of withdrawals from checking accounts, savings accounts or prepaid cards, the agency found.
