(Consumer Finance Protection Bureau)
A report released by the Consumer Finance Protection Bureau (CFPB) highlights junk fees applied by payment processing companies that help school districts in processing school lunch payments.
Often used by parents with limited or no alternatives, these companies have broad control over transaction fees. Users have no control over fee rates, and often cannot look for cheaper options.
The aim of the report is to help school districts avoid making contracts with firms that issue high fees against those who purchase school lunches. In many cases, payment processors have no other competition Therefore, school districts less inclined to negotiate service fees, which may create more hardship for lower income families.
