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USA: Kroger to make customers pay for cash-back debit card payments

Author: George Anderson

Source: RetailWire

Kroger announced that it will begin levying service fees for all purchases paid with a debit card in which the customer requests cash back. Will bean counters rejoice, believing this to be a brilliant financial move that adds incremental revenue to the grocer’s top and bottom lines? Will the move bring resentment from customers who see Kroger nickel and diming them so it can pad its books for shareholders and Wall Street analysts?

While not necessarily an indication of how the chain’s customers will respond in Kroger’s stores, early reviews on the grocer’s Twitter feed were mostly critical of its action.

“Let me understand this. I have to now ring up my groceries myself, bag them, and get charged a ‘convenience fee?’ That @Walmart across the street is looking awfully convenient.”

Kroger offered the following reply in response to the criticism.

“We are sorry to hear about your feelings about the cashback fee! We have a fee due to banks & other retailers raising ATM fees & limiting the amount of cash back. We want to offer our customers a convenient, low cost, way to get their money. We hope you understand!”

Kroger, according to WLWT5, began rolling out its charges for cash back purchases after testing, apparently with success, at its Dillons banner stores in Kansas.

Those who want cash back with purchases made with debit cards at Kroger stores will now pay:

  • $1 to $100 for a $0.50 fee;
  • $100.01 to $300 for up to a $3.50 fee.

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