King Soopers Now Charging for Cash Back
You might want to pause before you hit the 'cash back' button next time you're in the King Soopers checkout line.
King Soopers and City Market stores will now charge 50 cents whenever a customer chooses the cash back option after using their debit card, according to The Denver Post.
The change actually began in October, and applies to both cashier lines and self-checkout machines.
The option was previously free. Customers were able to withdraw up to $100 in cash with no additional fee. They could also withdraw up to $300 if they were willing to pay a $3.00 fee, which will now be $3.50.
According to the grocery chain, customers with King Soopers cards are exempt from the extra cost in the latter case.
The new policy will also apply to Kroger stores, King Soopers' parent company, nationwide. The chain is crediting the change to the popularity of the cash back service, as well as processing and labor costs.
While the new fee isn't necessarily good news, it is still significantly less than the extra cost it takes to use an ATM, which charges around $3 per transaction.
For those hoping to avoid additional cash back fees, other stores are still offering the option for free.
Safeway allows customers to take out up to $60 in cash fee-free, while Target gives shoppers the ability to take out up to $40 without a fee with the use of their PIN.
Walmart follows the old King Soopers policy, offering customers the option to take out up to $100 in cash for no additional cost.
According to Greg McBride, the chief financial analyst at Bankrate, the rise of ATM fees is due in part to the fact that less people are using them because of competitors such as Venmo and PayPal.
McBride fears that King Soopers' new fee could turn off customers, causing them to shop at other stores that don't charge a fee.
Even though the change is only 50 cents, this news certainly gives King Soopers customers something to think about.