The Consumer Financial Protection Bureau has released a report on payment processing companies that help school districts process children’s school lunch payments. The CFPB explains: “These private companies process payments made by parents who may have limited or zero payment alternatives. With a captive customer base, 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. … [The] report highlights average costs and potential risks for families using electronic payment platforms to add money to their children’s school lunch accounts. More generally, the report also reviews the market size and landscape of school lunch payment processing companies.”
The CFPB’s press release, with a link to the full report, is here.
