They will rake in millions. I can easily go to the bank or another store. Seems greedy.

If you regularly do cash back when grocery shopping is that enough to drive you to shop elsewhere?

Two of the three grocery stores near me used to do pack-your-own-groceries, the third one didn't, the other two no longer do. Service, the name of the game in the low profit margin of grocery stores.

We don't do cash back and I don't see that many people doing it, at least not those in front of me in the grocery store lines.

The grooming shop I was in today had a sign that they charge $1.50 for debit purchases. I really don't like the nickel and diming being done. I figure it's the cost of doing business and for convenience. Then again, I do pay cash when I can, to try and save the charges that are incurred by credit card and banks to small businesses.

This has not happened so far. But....we do have a local deli that charges if you used a debit or credit card. It is a small fee but I always make sure that if I go there I have cash.

My dry cleaners has up the minimum to use a credit card from $10 to $20.

Dollar Trees machine says you may be charged a dollar for it. I have never got money back because of that.

Most grocery stores in my area have ATMs. Most drug stores do too. Get your cash from them, it's just as convenient.

Elmer, they do. But they actually charge you 2.50. Or at least the one at my Publix does. I guess just members of certain banks would not get a fee.

I wonder if the practice is to cover their costs of bad checks.

It's a low margin business and many customers go to stores they think have low prices. Any added revenue is welcome. Ever hear of the common practice of slotting fees paid by product suppliers for linear shelf space in stores? Stores known more for quality and service and not for lowest prices will be less likely to have such a charge.

Iris. Yes, many banks refund ATM fees. Mine covers up to $15 per month in a free, no minimum balance account, we've never had more than $9. Such banks are out there to be found

I get cash back from Whole Foods without any fees. My bank does not charge ATM fees and refunds me other ones, but since I am often at WFM and need very little cash, this works.

As there are charges, accounting and waiting some weeks for the money with the credit cards, I've said that there should be a discount for payments in cash.

I've heard that the contracts with the stores say that they can't do that.

ole joyful

One of the stores I use has started charging 50 cents for up to $100 and $3.50 for over that. I asked other stores and no one else was charging . It will certainly make me go elsewhere. I seldom go to the bank and never use ATM's. I am not paying to get my own money from my bank. When I use my debit card at the store they electronically check if I have the money in the account. They have no exposure. I cant imagine why a store would do this. Lots of stores.

This topic came up on my So Cal Nextdoor. I never get cash at the grocery store. In fact, I never use my debit card.

I prefer to use a credit card in case the number gets compromised. If someone uses my credit card, reporting the fraud doesn’t impact my available cash.

I think Kroger has overextended themselves and isn't doing well. I saw something about their middle management being laid off not to long ago. They are trying to make money or at least cover costs any way they can.

It's not safe to get money from anywhere anymore. I get mine from the bank atm. We have a problem with people being followed as they leave the atm. Mainly it has been cars being broken into afterwards, but a few stories have made the news about being followed home and people getting beat up.

The Ralphs that I go to in Westchester has an office and ATM for US Bank, which is the bank that I use, and so I can go to the ATM there to get cash without a fee.

I was unaware of the 50¢ fee, and so I will make sure not to get cash back at Ralphs. I did get cash back at CVS, and I don't think they have a charge for that.

I do most of my shopping at Bristol Farms, also in Westchester, which is more expensive, but the shopping experience there is so much better, and the quality is very much higher than at Ralphs, especially in the fish department, as well as the meat and cheese departments. They have better sushi as well, but I tend to buy that at Marukai or Mitsuwa. When I lived in Venice, I shopped at Gelson's in Marina Del Rey, and they had excellent sushi. Their fish was good too, but not as good as Bristol Farms. I used to buy fish at the Santa Monica Seafood Market, until they moved to a new location where it is difficult to park.

Jasdip, are you sure it's not credit card purchases that are getting hit with the $1.50 fee at the grooming shop instead of debit cards? The article points out that debit cards typically carry lower fees than credit cards.

FWIW, it never dawned on me that "cash back" was an allowable practice with a debit card. Of course, I've never activated any debit card offer, always use credit or cash.

There is really very little difference in the functionality of a debit card versus a credit card. The debit card just 'debits' or withdraws funds against your account immediately rather than against a line of credit but otherwise can be used in the exact same manner as a credit card. In most cases, credit cards will not allow cash back on purchases. For smaller retailers, acceptance of a debt card for payment will generate the same servicing fees as accepting a credit card and many will pass that fee on to their customers, since so few pay by cash or check these days.

I have never used a credit card for everyday purchases. It is only reserved for emergencies. But I do use my debit card for just about everything else - have for many years and without any issues. Have even used it safely out of the country! And I frequently get cash back.....just to have a small amount on hand when small purchases pop up, cash only facilities or for tips, etc. The last time I was at a Kroeger's owned store in my area, there was no charge for cash back with purchase but that was earlier in the fall. There is not one located nearby and I don't patronize them often so that might have changed. I don't know know of any other businesses nearby that charge this fee but many places do limit the amount of cash you can receive. The reservation tribal stores, where I get gas, limit it to $20.

I wonder if there has been an increased cost to the store to give cash back from a debit transaction. I bet most consumers aren't aware of the fees that stores have to pay to the credit card companies for every transaction; perhaps there is something new with debit cards? Or a problem with debit card fraud (but I can't think what would be the risk to the store, if so.) If not, and other chains don't follow their lead, the charge at Ralph's won't last long I would bet.

When I lived in SoCal, there were several nearby gas stations that offered a "cash" price vs. credit. I've also seen one up near Toledo that did so - but never anywhere else in the state.

Now-a-days, if someone said "you can pay me 50 cents to NOT drive a couple extra miles, and NOT need an extra half hour" to accomplish a simple task ... I'd consider it a bargain. Time, calmness, and serenity is worth it :-)

I have no problem covering the fee a small privately owned store or business might charge to help cover their cost, but Kroger? Oh H*ll no. If they’ve over extended themselves, their “recovery” should not be put onto the shoulders of their consumers or their middle management. It’s the greed and decisions of the heavy earners at the top that got them into trouble to begin with. Loose the big salaries and that would be a good start towards their recovery.

Ralphs stores here have had quite a few employee strikes, and I think it is the only grocery store here that I know of that has had picket lines.

The Arco gas stations now charge a 50¢ fee if you pay by debit card. The last time we went to one, we had to pay inside, and so we don't go there anymore. Also, the station was very crowded, and the Valero station across the street had gas at the same price. Unfortunately, the Valero station in Cathedral City is now closed.

Account holder protection from fraudulent activity is more variable with debit cards from bank to bank than are credit cards. Also, using your debit card at a retailer is potentially giving hackers easier access to your PIN, which otherwise would stay within the more secure environment of bank ATMs.

Since cards with a mag strip can be counterfeited, that plus your actual debit PIN jeopardizes, if even temporarily, your entire bank account. Much riskier than using a credit card. Better to restrict debit card use to ATM transactions and use a credit card for purchases.

Most gas stations in our area have to fee levels, one cash and one credit and debit cards are considered to be credit as well.

Whether it’s through higher prices or fees at the register, one way or another, the consumer pays for that credit/debit fee charged by the banks. Grocery stores recoup their costs (of doing business) thru their pricing so IMO having to pay an additional fee to take some extra cash out comes off as a form of double dipping.

I use credit cards out of preference for my own personal convenience. I always have enough cash for most day to day purchases but I rarely use it.

Maybe half the gas stations in my area have two tier pricing, with a lower price for cash. Paying in cash takes more additional time than I usually have or want to spend. I almost always drive past those stations except when limited time or limited availability of other choices change my normal priority. In those cases, I still use my credit card but pay the higher price.

Most debit cards these days are chipped, just like a credit card, which decreases card fraud but does not eliminate it entirely. And there is no reason to assume entering your PIN at an ATM is any safer than using it at a retail establishment.

Most gas stations, as an example, don't have chip readers. Same is true of many other retailers. So if you swipe your card and enter your PIN, you've opened the gate all the same.

Rationalize what you prefer to do all you want, it doesn't change the risk.

Here's a link you may not want to read, it's authoritative info that contradicts your point of view. It explains a number of the rights and protections that debit cards offer that are inferior to what a credit card user would have.

10 places not to use a debit card

All the gas stations I frequent have chip readers. And unless it is a very small mom and pop establishment, all other retail outlets have them as well. Any device that requires you to leave the card in place until authorized and then beeps when it can be removed is a chip reader. I haven't needed to swipe my debit card for ages! And most debit cards can be used as a credit card at any card reader (including at gas stations) so no PIN required for the transaction. But if used as a credit card, you cannot receive cash back.

In more than 25 years using a debit card for all of my everyday transactions, I have never had my account compromised. You just need to use reasonable care if using a PIN. There was one attempt to use my card number (no card, no pin) at a grocery store in the midwest but I was notified by my bank immediately because of the out of area usage and the transaction was voided and I was never out a cent.

Feel free to be overly cautious about this if you wish but the very low risk is worth it to me for the sake of convenience.

Every time you use any card, credit or debit, you are exposing yourself. Be smart about it.

The piece I linked to cautioning about 10 places to not use debit cards (including online shopping, restaurants, travel, and gas stations) is from a legit industry card reporting site that monitors credit cards and is part of the same org that includes bankrate.com.

If you think its information is wrong, you should tell them so. I've heard these cautions and other similar ones about debit cards within the financial industry (where I spent my career) for far too long to seriously consider that what you think to be your special insights are more informed.

You think you are the only one with a banking background?? LOL!! I was a vice president of commercial banking when I retired from the industry. And you can find just as many financial and credit monitoring websites that downplay the risk of using chipped debit cards as you can find those that caution against ever using them.

I don't have any special insight but then neither do you. I am only reporting my experience and what I info have gained from those sites as well as my own bank. Tens of thousands use debit cards on a daily basis for all manner of daily financial transactions and I would love to see statistics that establish that they are at greater risk or more prone to card fraud than anyone using a credit card. Actual statistics, not opinions.

Go ahead and not use them if that is your preference. But do not assume that you have better information or are more informed than anyone else. You seldom are.

We’ve had our account wiped out by someone who had apparently copied my ATM card. Fortunately within 24 hours the Credit Union we bank with restored our funds and made us whole again. Ever since then, we pay for everything with our credit card and pay that off monthly when the statement comes in. Neither of us usually has more than 20.00 in our wallets between the two of us.

I can’t remember the last time I bought gas from a regular gas station. We have both Costco and Sam’s right next to the fwy entrance, so we always gas up at one or the other.

Someone who worked in commercial banking who doesn't understand card risk or float? Who's paid with debit cards for retail purchases over a 25 year period, 20 or more years of which were with a card without a chip? These comments show your knowledge or lack more than other words could convey.

ARCO stations are gradually converting to accepting credit cards at the pump. The ones that have converted are posting a cash versus credit card price. Those using a debit card will be charged the credit card price plus a 35 cent convenience fee. In some areas it is higher, as much as 45 cents and that could change.

I don't even have a debit card. They don't make any financial sense to me. I use credit cards for almost everything. Some cards give 5% cashback on a quarterly calendar. I have one rewards card that is offering double cashback on gas right now. So until I hit the limit or a better deal comes along that one is my gas card.

Debit cards offer no benefit other than not needing to carry cash. But you are using your own cash that is in the banks. By paying with a credit card I am using the banks money and getting paid to do it as long as I pay my balance in full each month which is what I do.

I agree with watchme that debit cards make no financial sense. I have two credit cards that I use and pay off monthly, that pay airfare and hotels for me when I vacation. A debit card doesn't provide those perks.

And for protection, there are different laws for credit card and debit card protection. For credit cards, the Fair Credit Billing Act (FCBA) ensures that you won't be responsible for fraudulently opened or used accounts. If someone takes your credit card on a shopping spree, the most you'd be on the hook for is $50. Most credit card issuers won't bother with charging you that amount at all. Once the fraud is identified, the erroneous charges are credited back to your account.

The law governing debit cards is not quite so powerful. If someone uses your debit card without your knowledge or authorization, your liability is protected by the Electronic Funds Transfer Act, which gives you the right to challenge fraudulent transactions. But you have to act fast. As long as you alert the bank that your card was stolen or compromised before someone uses it, you won't be liable for any of the future transactions. Wait two business days after the fraud and you might have to pay up to $50. If you miss that deadline and wait 60 days, your liability increases to $500. Let 60 days pass and your liability is unlimited, which means all your money in the account that was taken might be lost for good.

Even if you do report a fraudulent debit card charge in time, reimbursement can take up to two weeks. That can put you in a precarious position. You may not have enough cash to pay for such expenses as your rent, mortgage, food, or gas. And if it prevents you from paying your credit card and loan bills, a late payment can wind up on your credit report, which will negatively affect your credit score.

Sephia is right Gardengal. When I say we were fortunate, I really do mean we were fortunate because the Credit Union didn’t have to work so expeditiously to reimburse the funds. We had gotten paid on Friday and the account was completely drained the next morning. And to my surprise as well, they actually used the MasterCard function to drain the account. That alerted the credit dept but it wasn’t until after I had already discovered the problem. I loved the convenience and ease the debit card offered and never thought something like that would happen to us either. It was obviously a false sense of security and now, we never use our debit cards.

I made a rare appearance at my bank’s drive through window to deposit a couple of checks recently. The teller noted my 37 years of banking with them and mentioned that I’d yet to activate my debit card.

”Yes.” I said. “And I never will.”

When I got a new debit card that had the tap and go feature, I went into the bank and disabled that. If I ever lost my card, no one would be able to use it ($100/day maximum) just by tapping.

Our bank recently got new updated ATM's, envelope-free. Yesterday I specifically went to the bank to withdraw cash instead of using cash-back at the store, to see how it worked.

Oh dear, it asked how I wanted my money, 50's, 20's or both? Then I had to do the math. It's nice not receiving a bunch of 20's when I pulled out a few hundred dollars.

So I took out $300 and deposited $100 back, to see how it worked without using envelopes. What fun! LOL

The use of Debit Cards may be discouraged at the gas pump but that hasn't changed the habits of people younger than most of us.

Debit Card At The Pump

Swipe At The Pump

In July 2019 the local Kroger Fuel Center converted to chip card payments. It's a slower process, but I don't mind the 20 second delay.

My local bank closed all drive through windows. If you can't deposit with your phone, you'll have to walk in.

Chips in either type of card (credit or debit) are a relatively new safety feature here in the US. Where I am, only a handful of businesses that I go to, lack chip readers. Are other parts of the country so far behind middle-of-the-road Virginia?

If I understand correctly, debit cards are used a bit more often than credit cards at the lower end of the economic spectrum -- their value is that a debit card doesn't let you overspend your budget too wildly. I might be wrong, of course. Regardless, debit cards remain popular so they must have something going for them.

Expense of the courier bringing cash?? I doubt that is the reason.......here the couriers call several times a day to pick up cash, not deliver it. Of just about any retail establishment, grocery stores are more likely to have an excess of cash rather than a shortage.

I love credit cards. It's interest free money for 30 days (or so). Float is a wonderful thing. :)

As long as you pay the balance in full every month, they are paying you to carry the card.

I pay everything I can on a credit card. I get up to 5% of every purchase credited back to me in points, which I can redeem as a credit against the card's balance.

I won't use a debit card. I've had 2 instances of fraud on my credit card, and in both cases the issuer took care of it quickly and with no real hassle to me. Had that been a debit card that would have been "my" money that was missing. No thank you. :)

I only use credit unions for my banking; I refuse to patronize commercial banks. There are never fees for using any cash machine at any credit union, not just my own.

One of my credit unions has a really high interest rate (for your money being instantly available) on a balance of $12k to 15k (don't recall what it is currently - somewhere between those two amounts) but you have to make a certain number of debit transactions per month to receive the high interest. So I use my debit card at my food co-op, the small grocery store where I shop, the local coffee shop if I don't use drive through, the bird food store, etc. I have no problem reaching the threshold for transactions each month, but I never use the debit at restaurants or gas stations or larger grocery chains (which I seldom patronize anyway). I purchase all my gas at Costco (for the most part) and use their credit card. I think they rebate 5% at the end of the year. It's a nice little bonus and makes paying for membership a bargain.

I get up to 5% of every purchase credited back to me in points, which I can redeem as a credit against the card's balance.

Off every purchase or certain categories? What card is that?

Oly, what's a really high interest rate for a checking account?

I prefer online savings at 1.85% and it's readily available too. No transactions required. We keep a minimum amount in local checking account.

Michael here's the info - 3% yield right now on balances up to $25k:

https://www.twinstarcu.com/checking/kasasa-cash

Michael - it's from Chase, called a Chase Freedom Card.

It's 1% on all purchases, and 5% on selected categories which change every quarter. Next quarter is gas stations. They've done 5% on home improvement stores (Lowes, Home Depot - I made a killing that quarter!), drug stores, movie theaters, etc..

https://creditcards.chase.com/freedom-credit-cards/home

Oly, thanks for the link. I'll check it out.

patriceny, thanks. We use the Chase when the offer exceeds Discover or Amazon Prime Visa.

When a customer pays me with a credit card, I'm charged 3% of the transaction amount in bank fees, (more for AmEx). This 3% also applies to cash-back amounts, So in effect, I'm paying the bank $3 for every $100, or 60 cents for every $20, of customer cash-backs. It's starting to add up.

HU**** I never thought of that percentage being charged on the cash back. I'm going to stop getting cash back because of that. I don't want the credit card companies to make even more $$ because of my habits. Thank you.

If you want a good deal on a Credit Card, Citibanks Costco card has a really good program. 4 pts on gas, 3 pts on travel and dining, 2% on costco purchases and 1% purchases anywhere else. They pay it out every February in the form of a voucher that you can cash out at their store.