403650 05: The Celebration School, under criticism for its alternative educational model, is shown April 9, 2002 in Celebration, FL. Many parents take their children to other schools for a more traditional education. (Photo : Preston C. Mack/Getty Images)
Single American parents got a surprise charge for their children's school lunch, adding to their financial challenges this school year.
As detailed by AP News, a single mother complained that while paying incredibly high medical bills, she's also being charged an unexpected $2.49 program fee for her daughter's school lunch. In the report, this is due to schools turning to cashless payment methods, which means parents get an additional charge of 4% to 5% per transaction.
"I was paying a fee every time. The $2.50 transaction fee was the price of a lunch. So I'd pay for six lunches, but only get five."
Now, parents are complaining because no transparency has been given to schools, especially since they are reportedly offering a "fee-free" option once they choose to pay by cash or check. However, while they're away, some find the two methods burdensome
Not all fees are the same in US schools. AP News also interviewed a parent who has to pay $3.25 per transaction, which forced her to give her son packed lunches instead. She complained that while the cost of living in South Carolina is a lot lower, so are their salaries.
Consumer Financial Protection Bureau (CFPB) reviewed 300 large US public school districts and found that over 87% apply payment processors. This means, companies of digital banks, charge every student at least $2.37 for school lunch. This largely impacts families from lower incomes, especially if they are hit with the fees weekly.
Affected parents remarked that it does not make sense to have free lunches if they take away a couple of dollars from people "who need it the most."
In their defense, digital bank companies argued that school districts can negotiate fees. However CFPB found that school districts are being prevented from negotiating because of bank competition, specifically among three companies; LINQ Connect, MySchoolBucks, and SchoolCafe
Parents are being urged to pay by cash or check instead to ensure that they are not paying unnecessary charges every time their children eat their "free" school lunches.