Consumer agency calls out ‘junk' fees that parents pay for online school lunch accounts

The Consumer Financial Protection Bureau (CFPB) is examining the fees parents pay for online deposits into their children’s school lunch accounts. The CFPB found that some parents may pay up to 60 cents in fees for every dollar they deposit, resulting in millions of dollars for payment processors. A new report from the CFPB analyzed data from the top five online payment processors used by schools. It revealed flat fees ranging from $1 to $3.25 per transaction and percentage fees between 3.5% and 4.58% per deposit. These fees could impact lower-income families who qualify for reduced-price lunches the most, potentially paying 60 cents for every dollar spent. The CFPB estimates that payment processors collect between $28 million and $92 million in fees from families paying full price for lunch and between $1.9 million and $10.2 million from those receiving reduced prices.