CFPB Report: Retailers Pocket Windfall from Cash-Back Fees, Fed's Fee Cap a Big Miss

The Consumer Financial Protection Bureau (CFPB) has published a report highlighting that Americans are incurring tens of millions of dollars in fees when accessing cash back at large retail stores using debit or prepaid cards. This comes amidst concerns over the Federal Reserve's cap on debit transaction costs, which previously led to a decline in free checking accounts and merchants not passing on savings to consumers. The report indicates that retailers are pocketing a windfall from these cash-back fees, raising questions about the effectiveness of current regulatory measures in protecting consumers. The Federal Reserve’s Debit Card Fee Cap has been criticized as a big miss for the little guy.