School lunch fees? School lunch online cashless platform littered with processing fees
CHERRY HILL, N.J. - It’s the first day of school for many students in New Jersey, including Johnny and Joey Eagel, who, after day one, are hanging out playing catch in the yard.
With the start of the new school year, their mother Lisa Eagel is prepping for another year of making their lunches at home.
"There’s not a way now that I can just give him $5 or $10 to go to the school. You have to go online and it is a process," says Eagel.
A cashless process that many schools in New Jersey have been using, but with the convenience of the payment portal, Eagel says there are additional fees.
"I didn’t even know the reason for it, why we had to pay that extra convenience fee or whatever they even call it for him to have lunch," says Eagel.
An example of the fee can be seen on a website of one local school district, showcasing their 2.3 percent and additional $1 per-transaction fee.
Breaking it down shows a $50 deposit would charge a $2.15 convenience fee to cover the credit card processing fees.
"You would just think it’s a school lunch. You would just be able to go and have lunch. That’s why we just started packing," says Eagel.
The Consumer Financial Protection Bureau released a report earlier this year highlighting what is being called "junk fees" charged by school lunch platforms.
The report says on average payment processors charge transaction fees of $2.37 or 4.4 percent of the total transaction.
The CFPB expresses concerns that parents and caregivers can’t choose their payment platform. Fee free options may not be openly presented to all families. Fees add up for lower income families, and payment processors face little competition.
"We do about half and half, my son does like to buy lunch so, half the time I will pack him a lunch and if he sees something on the menu that he wants, I’ll let him buy lunch that day," says Deis.
Deis says when she has to go through the portal system, she appreciates the convenience of keeping track of her child’s purchases.
"I do like that part of being able to manage it online. I would like it if it wasn’t a fee," says Deis.
Federal Policy shows districts can charge a fee for online services, but they must offer a free option of paying for lunches, that may include taking cash in person to the food services office.
Families should contact an individual school district to see what that option is.