JOHN: WITH THE AVERAGE COST OF SCHOOL LUNCHES NATIONALLY BETWEEN $55 AND $60 A MONTH SCHOOLS ARE TURNING TO ONLINE PAYMENT SYSTEMS, RUN BY PAYMENT COMPANIES WHICH TYPICALLY CHARGE TRANSACTION FEES.

THE CONSUMER PROTECTION BUREAU ESTIMATES THAT THE FEES CAN AMOUNT TO AS MUCH AS $42 IN A SCHOOL YEAR AND FAMILIES QUALIFYING FOR REDUCED PRICE MEALS MAY BE PAYING 60 CENTS IN FEES FOR EVERY DOLLAR SPENT.

TELL US HOW DO THESE FEES WORK?

>> THEY TYPICALLY TAKE PLACE WHEN PARENTS ARE TRANSFERRING MONEY INTO THEIR STUDENTS' SCHOOL LUNCH ACCOUNTS.

SO IT'S WHEN PARENTS ARE LOADING UP THEIR KIDS FOR THE WEEK OR SCHOOL YEAR AND THE TRANSACTION FEES CAN BE AS HIGH AS $3:25 A TRANSACTION OR 4% OR 5%, THOSE ADD UP OVER THE COURSE OF A YEAR.

JOHN: WE SPOKE WITH THE MOTHER OF A SIXTH-GRADER.

>> $2.50 DOESN'T SEEM LIKE A BIG DEAL BUT IF YOU'RE STRUGGLING, THATAS SCHOOL LUNCH OR TUITION IN A WEEK, THAT'S $5.

A QUARTER OF A TANK OF GAS.

IT'S A BIG DEAL AND UNLESS YOU'RE LOOKING FOR IT YOU DON'T REALLY NOTICE IT.

JOHN: IS THAT TYPICALLY WHAT YOU'VE HEARD?

>> THAT'S EXACTLY RIGHT.

THE WAY THE SYSTEM WORKS, PARENTS WHO FEWER RESOURCES END UP PAYING MORE FEES MORE FREQUENTLY BECAUSE THEY CAN'T NECESSARILY AFFORD TO LOAD UP THEIR KIDS' ACCOUNTS WITH HUNDREDS OF DOLLARS ONCE.

JOHN: WHAT HAPPENS TO PARENTS PERHAPS DISPROPORTIONALLY AFFECTED BY THIS?

>> PEOPLE WHO PAY FOR REDUCED LUNCH END UP PAYING A DISPROPORTIONATE AMOUNT ON FEES.

THERE ARE WAYS IN WHICH YOU'RE PENALIZED FOR NOT HAVING ENOUGH MONEY TO WORK THE SYSTEM.

JOHN: SO A PARENT WHO CAN AFFORD TO PAY A MONTH OR WEEK AT A TIME WON'T HAVE TO PAY AS MUCH AS WHEREAS A PARENT PAYING MORE FREQUENTLY GETS HIT EVERY TIME?

>> THAT'S EXACTLY RIGHT.

JOHN: OFFICIALS SAY THEY HAVE TO HAVE A FREE METHOD FOR PUTTING MONEY INTO THESE ACCOUNTS.

ARE THEY THERE AND ARE THEY USED?

>> TECHNICALLY THE FEE-FREE VERSION SHOULD BE AVAILABLE AT EVERY PUBLIC SCHOOL BUT THESE DON'T HAVE A CAPTIVE AUDIENCE BECAUSE IT'S REALLY INCONVENIENT TO HAVE TO GO TO THE SCHOOL AND WRITE A CHECK OR PAY BY CASH.

ESPECIALLY WHEN YOU DON'T HAVE THE TIME OR MONEY TO TAKE ON ANOTHER LOGISTICAL CHALLENGE.

JOHN: ARE LAWMAKERS LOOKING INTO THIS?

>> YES, THE U.S. DEPARTMENT OF AGRICULTURE HAS PUBLICLY COMMITTED TO TAKE FURTHER ACTION.

IN 2017 THEY PUT OUT GUIDANCE STATING THAT SCHOOL DISTRICTS ARE MANDATED TO BE MORE TRANSPARENT AND TO ACTIVELY INFORM PARENTS THAT THERE SHOULD ALWAYS BE A FEE-FREE OPTION OPTION, THEY SHOULD ALWAYS BE ABLE TO PAY BY CASH OR CHECK.

BUT I THINK THIS REPORT SAYS THAT THEY'RE TAKING THIS SERIOUSLY AND ARE SCRUTINIZING THESE COMPANIES FOR THEIR PRACTICES.

JOHN: WHAT WOULD YOU SAY TO PARENTS WHO HAVE TO DEAL WITH THIS?

>> DEFINITELY BE AWARE THAT FEDERAL POLICY STATES THAT YOU SHOULD ALWAYS BE ABLE TO PAY BY CASH OR CHECK TO AVOID THESE FEES AND THEN THERE HAVE BEEN EXAMPLES OF SCHOOL DISTRICTS WHERE THE DISTRICTS THEMSELVES HAVE SUCCESSFULLY DEALT WITH LOWERING THE FEES IN THEIR PROCESSING COMPANIES.

SO TALK TO ADMINISTRATORS ABOUT OTHER POSSIBILITIES, EVEN IF THE DISTRICT ITSELF IS COVERING THOSE FEES RATHER THAN THE COST BEING PASSED ON TO PARENTS.

THOSE ARE SOME OPTIONS.

JOHN: THANK YOU SO MUCH.