Cash back fees: Here's how much retailers have been charging you

The Street

A new report from the U.S. Consumer Financial Protection Bureau found that several retailers are charging you for cash back.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:03Here's what we're watching on the street today.

00:05Retailers are in focus on Wall Street

00:07with the Dow at record highs and the S&P 500

00:09moving towards the same.

00:11Foot Locker posted its first same store sales growth

00:14in six quarters, thanks to an early boost from back

00:17to school shopping.

00:18Calls, which has struggled for a long time,

00:21beat profit forecasts, but sales guidance was disappointing.

00:24Sticking with retailers, you know

00:26when you swipe your credit or debit card at a retailer's

00:28machine and it asks you if you want cash back?

00:31Well, bank rate has done the math,

00:33and the average fee from getting cash back at the register

00:36has hit a record high of $4.77.

00:40That fee is a combination of the ATM service

00:43charge and your bank's out-of-network convenience fee.

00:47While that may not seem like much, consider this.

00:50The Consumer Financial Protection Bureau

00:52surveyed the cash back policies of eight major retailers

00:55of differing types, Dollar General and Dollar Tree,

00:59Kroger and Albertsons, Walgreens and CBS,

01:02and Walmart and Target.

01:04Just three of those retailers alone,

01:07Kroger, Dollar General, and Dollar Tree,

01:09rake in an estimated $90 million in cash back fees every year.

01:15Dollar General charges as much as $2.50,

01:19and Kroger's fee goes as high as $3.50.

01:22While those fees hit all of us in our wallets,

01:24the CFPB says it disproportionately

01:26hits those who can least afford it,

01:29those who typically frequent dollar stores the most.

01:32Quote, the geographic distribution

01:34of dollar store chains and their primary consumer base

01:37raises concerns that these fees may

01:40be borne by economically vulnerable populations

01:43and those with limited banking access.

01:46There are 36,000 Dollar Tree, Family Dollar,

01:49and Dollar General branded locations, mainly in the US.

01:52The CFPB says it will continue to monitor the situation.

01:57That'll do it for your daily briefing from the New York

01:59Stock Exchange.

02:00I'm Conway Giddens with The Street.

Category

Transcript

Recommended