A new report from the Consumer Financial Protection Bureau (CFPB) reveals that many school districts are charging families high fees for using cashless payment systems to fund their children's school lunches. While schools are legally required to offer fee-free payment options, these alternatives can be inconvenient and disproportionately affect low-income families.
Single mother Rebecca Wood, 45, was already dealing with high medical bills in 2020 when she noticed she was being charged a $2.49 'program fee' each time she loaded money onto her daughter's school lunch account.As more schools turn to cashless payment systems, more districts have contracted with processing companies that charge as much as $3.25 or 4% to 5% per transaction, according to a new report from the Consumer Financial Protection Bureau .
For families with lower incomes who can't afford to load large sums in one go, those fees can hit weekly or even more frequently, increasing costs disproportionately. Families that qualify for free or reduced lunch pay as much as 60 cents per dollar in fees when paying for school lunches electronically, according to the report.In Wood's case, she researched the fees and learned about the USDA requirement to offer fee-free payment by cash or by check.
School Lunch Fees Cashless Payments Low-Income Families USDA Policy Consumer Financial Protection Bureau
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US consumer watchdog finds that school lunch fees are taking a toll on parentsThe U.S. consumer watchdog has found that low-income families typically pay as much as 60 cents per dollar in fees when paying for school lunches electronically.
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