As a retail and consumer expert, I know that getting cash back at the store is a favored tactic of savvy shoppers looking to save both time and money. And with nearly 15,000 locations across 48 states, Dollar Tree is a go-to destination for many bargain hunters. But as a picky shopper myself, I always dig into the details before pulling out my debit card for cash over. In this guide, we‘ll take a comprehensive look at Dollar Tree‘s cash back policy, how it compares to other retailers, and tips for making the most of this convenient perk.
The Evolution of Cash Back Offers
While it might seem like a modern invention, the concept of cash back actually dates back to the late 1800s. In 1891, the Larkin Soap Company began offering certificates redeemable for cash with purchases of their products to drive customer loyalty. Gas stations and grocery stores later adopted their own cash back programs in the early 1900s before credit card issuers introduced cash back rewards in the 1990s.
Today, cash back at the register is a common offering at all types of retailers, from grocery and drug stores to gas stations and dollar stores. According to a 2020 CreditCards.com survey, 43% of consumers have requested cash back on a debit card purchase. And with the average out-of-network ATM fee hitting $4.64 in 2021, it‘s easy to see the appeal of dodging an extra charge by getting cash over while you‘re already running errands.
Inside Dollar Tree‘s Cash Back Program
So how exactly does Dollar Tree‘s cash back program work? Let‘s break it down:
- Cash back is available on debit card purchases only, not credit cards or checks
- There is a $50 cash back limit per transaction
- Dollar Tree charges a $1 service fee for all cash back requests
- Cash back can be requested in multiples of $10 at the register
- Customers can ask for specific bill denominations like ones or fives, subject to availability
It‘s a fairly straightforward policy, but there are a few key things for picky shoppers to note. First, that $1 service fee is a flat charge regardless of the cash back amount. So if you‘re only looking to get $10 over, you‘re essentially paying a 10% fee, which is far higher than you‘d pay at an out-of-network ATM. But if you request the full $50, the fee comes out to a more reasonable 2%.
Second, while many items at Dollar Tree ring up at just $1 plus tax, the retailer has been expanding its multi-price point "Plus" offerings with products up to $5. This means the average transaction amount at Dollar Tree has been steadily rising, with the retailer reporting an 11.2% increase in average ticket in the second quarter of 2021. Larger purchases make it easier to hit that $50 cash back maximum and make the service fee more palatable.
How Dollar Tree Stacks Up to Other Retailers
Dollar Tree isn‘t the only dollar store chain offering cash back at the register. Let‘s see how its policy compares to some of its top competitors:
| Store | Cash Back Limit | Service Fee |
|---|---|---|
| Dollar Tree | $50 | $1 |
| Family Dollar | $50 | $1 |
| Dollar General | $40 | $1.50 |
| 99 Cents Only Stores | $20 | $0 |
As you can see, Dollar Tree ties Family Dollar for the highest cash back limit among these discount retailers at $50 per transaction. Dollar General offers a slightly lower limit of $40 but charges a higher $1.50 service fee. 99 Cents Only Stores has the lowest cash back maximum at just $20, but it‘s the only major dollar store chain that doesn‘t charge an extra fee.
It‘s also worth looking at how Dollar Tree‘s cash back policy measures up against major retailers in other categories, like Walmart and Target:
| Store | Cash Back Limit | Service Fee |
|---|---|---|
| Walmart | $100 | $0 |
| Target | $40 | $0 |
| Kroger | Varies by location, up to $300 | $0 |
| Walgreens | $20 | $0.50 to $1.50 based on amount |
| CVS | $35 | $0 |
Among this sampling of big box stores, supermarkets, and drugstores, Walmart offers the highest cash back limit at $100 per transaction with no extra fee. Kroger‘s limit varies widely by location but tops out at an impressive $300, also with no fee. Target‘s policy is more in line with Dollar Tree‘s, with a $40 limit and no fee. Drugstores tend to have lower limits, with CVS allowing $35 fee-free and Walgreens offering just $20 with a fee of $0.50 to $1.50 based on the amount.
So why does Dollar Tree charge a fee for cash back while most of its big retail competitors do not? It likely comes down to the slim margins on the store‘s small-ticket items and a desire to offset the cost of keeping extra cash on hand. Dollar Tree may also see the fee as a way to generate incremental revenue, betting that customers will be willing to pay for the convenience. With 6,169 Dollar Tree locations across the U.S. as of July 2021, even a $1 fee on a fraction of transactions could add up to a tidy sum over the course of a year.
Maximizing Cash Back at Dollar Tree
Now that we‘ve covered the ins and outs of Dollar Tree‘s cash back policy, let‘s explore some ways to make the most of this perk as a picky shopper:
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Combine cash back with coupons and discounts. Before heading to Dollar Tree, check the weekly ad for any special promotions and scour reputable couponing sites for printable Dollar Tree coupons. Combining cash back with other savings strategies can help offset that pesky $1 fee and reduce your out-of-pocket cost.
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Break larger purchases into multiple transactions. If you‘re doing a big stock-up trip at Dollar Tree and need more than $50 in cash back, consider splitting your purchase into multiple transactions. This will allow you to request up to $50 cash over on each transaction, although you‘ll pay the $1 fee each time. Make sure to do the math and weigh the fee against your cash needs and potential ATM charges to decide if multiple transactions make sense.
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Take advantage of Dollar Tree‘s bulk ordering options. If you‘re planning a large event or need supplies for a school or community organization, check out Dollar Tree‘s bulk ordering tools. The retailer offers case packs and multi-packs of popular items available for delivery or in-store pickup, with discounts for large quantity orders. Stocking up on these bigger packs can help you hit that $50 cash back limit and spread the $1 service fee across a larger purchase.
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Use cash back for budgeting or gifting. Getting cash over at Dollar Tree can be a smart way to stick to a budget or control your spending in certain categories. For example, you could get $20 cash back to use as your weekly dining out budget, or request ones and fives to fill birthday cards for your kids‘ friends. Incorporating cash back into your budgeting and gifting strategies can help you stay organized and avoid overspending.
While Dollar Tree‘s $1 service fee may be irksome to some shoppers, it‘s hard to beat the convenience of getting cash over while you‘re already out running errands. By understanding the store‘s policy, how it compares to other retailers, and some savvy strategies for maximizing this perk, you can make cash back at Dollar Tree work for your wallet. With a little planning and creativity, that extra buck could be money well spent.
