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Why do grocery stores in the U.S. offer cash back so eagerly?
The reason is, stores want customers to use cash.   By giving us cash, we are more likely to use cash next time. I feel a little guilty when using my bank card at the store because I know I'm giving about 2-3% of the sale to the bank.  Unless I don't really like where I'm shopping (ie Walmart), I try to use cash if I have it.  I doubt these large stores pay extra for supplying the cash portion.  They just need to keep the cash onhand. In other countries, do they not mind paying banks a percentage of each transaction?  That's a huge loss for retailers.  (I also heard tipping isn't popular in some countries, maybe the lack of regard for vendors is related somehow??) Oh, plus, it's a value added service.  A customer is more likely to return to a store if they provide this service.