Posted on 09/14/2024 6:30:47 PM PDT by Red Badger
Three big retailers have found another way to make money from shoppers - charging them for something that has always been a free perk.
Dollar General, Dollar Tree and Kroger are charging customers between 50 cents and $3.50 to get cash back when they make a purchase, a study has revealed.
Competitors including Walmart, Albertsons and Target are still offering it for free.
Charging for cashback 'preys on shoppers' - especially those who rely on dollar stores, a Reddit user posted in reaction to the news.
'So many of their customers lack the car or the gas money to drive to a bank ATM in order to avoid these charges.'
Across the three chains, customers are paying $90 million a year in cash-back fees, according to the Consumer Financial Protection Bureau.
Americans with lower incomes or fewer local banking options are more likely to have to pay these fees, the CFPB found.
Dollar stores in particular are frequently located in small rural towns often with fewer branch locations where residents can get cash out for free, the watchdog warned.
Consumers can get cash back when they make a purchase at certain stores using a debit or prepaid card at the register.
Shoppers typically have to choose from options of pre-set withdrawal amounts presented at the payment terminal at the time they make a transaction.
(Excerpt) Read more at dailymail.co.uk ...
Dg is fighting credit card fraud. By making everybody share the cost. DG made record sales in 202e but lost money do to shrinkage. DG is being hit hard by shoplifters and thieves. Throw in stolen credit cards and people using DG for cash back. Go to the bank or an ATM if you need cash. Or are atms racist?
“I haven’t used an ATM in 30 years and stopped getting cash back a long time also.”
Ditto. Haven’t used an ATM in about 30 years. And I don’t recall ever asking for cash back. (I kinda didn’t even know you could do that.)
If you use a credit card, you don’t need to get cash back
I believe cash back was a way grocery stores used to reduce cash on hand and the amount that could be lost if the store was robbed or that would have to be handled by the armored car company.
I used to always pay in cash. I now often use a debit card. The stores probably have a lot less cash coming in nowadays.
The ‘dollar stores’ went to smaller packaging as a result of inflation.
These smaller packages simply don’t allow the ‘dollar stores’ to offer good value.
The dollar tree store near me charges 1 dollar for cashback. It’s not new. Its been that way at that store for a lot of years now.
What if I use a debit card to pay for my groceries? I just enter my PIN and the money is directly debited from my account. There are no credit card fees involved.
Yes the merchant does pay a fee when you use a debit card. Just like if you use the credit card. The banks always win.
Kroger has been doing this for a few years now, at least. I never use that option anymore cuz yes, it is just another way to rip off the customer.
When I moved back to Texas in 1999, Kroger was the only game in town. Then HEB moved in. Now our local HEB is packed especially on weekends. The Kroger is a ghost town. I don’t know how our local K Roger stays in business.
“ locations where residents can get cash out for free, the watchdog warned.”
They have put these dollar store in “towns” that are nothing but a crossroad here in central TX.
Its good for the few locals but does not make sound business sense.
I long for the day when I can have a Publix within an hour’s drive from my home.
I used to hate Walmart because they were so big and made me uncomfortable. The one in my town is smaller, and it’s the closest grocery besides Kroger. Our Kroger has been so bad, and it’s gotten worse every year, so I only go there out of complete necessity. I will go to the other Krogers in the bigger towns that are further away if I’m going in that direction.
I’ve begun to do my produce shopping at the orchard’s market. Most of it is homegrown or from fairly close by. The Walmart is a hop, skip, and jump from the orchard. I don’t need to give any store who has rude workers my business.
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