The Consumer Financial Protection Bureau (CFPB) is now targeting transaction fees on school lunches. The CFPB pointed to the approximately 20 companies offering services to school districts nationwide. According to their data, transaction fees average 4.4% of the purchase or around $2.37. While this may seem like a small amount, over time, they add up, and really, the fees should be near zero.
CFPB Director Rohit Chopra said transaction fees and other types of junk fees can take an economic toll on American families including school lunches for children.
“Today’s report will help school districts avoid contracts with financial firms that harvest excessive fees from families who purchase school lunch.”
The CFPB shared there are “limited or zero payment alternatives” for the captured audience.
“…these companies can have broad control over fees assessed for each transaction. These fees are widespread and often hit low-income families the hardest. Overall, parents and caregivers have no control over fee rates and lack opportunities to shop around for cheaper options.”
While the CFPB has yet to announce an action, a report such as this can be a precursor to pursuing the firms providing expense payment options for schools.
The full report on payments and schools is available here.
