School lunch fees are hurting parents wallets
TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why the CFPB is taking on school lunch fees.
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00:00I'm Conway Gittins reporting from the New York Stock Exchange.
00:02Here's what we're watching on the street today.
00:04There's a positive vibe around tech Wednesday,
00:07thanks to the latest quarterly results.
00:09Advanced micro devices topped expectations
00:11and guided full year estimates higher.
00:13The company pointed to strong demand for its AI chips.
00:16Microsoft beat forecasts, even though revenue
00:19from its cloud business came in ever so slightly
00:22below analysts' targets.
00:24Investors also have economic news
00:25to consider.
00:26Private hiring in July was much weaker than expected,
00:29according to payroll company ADP.
00:32The Federal Reserve will likely take the hiring
00:34slowdown into account for its decision on interest rates.
00:38In other news, the Consumer Financial Protection Bureau
00:41is going after the high fees some parents are
00:44paying for school lunch programs.
00:46In some cases, these online payment processing fees
00:50can eat up to $0.60 of every dollar
00:52deposited to a digital lunch money account.
00:55Quote, transaction fees and other types of junk fees
00:59can take an economic toll on American families
01:02just trying to pay for basic school expenses,
01:04including school lunch for kids.
01:06Today's report will help school districts
01:08avoid contracts with financial firms
01:11that harness excessive fees from families
01:13who purchase school lunch, CFPB Director Rohit Chopra
01:16said in a statement.
01:18According to the CFPB, the top five online payment
01:22processing companies charge a fee of 3.5% to 4.58%
01:27per deposit.
01:29This puts a bigger financial burden on lower income families
01:33who tend to make smaller deposits more frequently.
01:37On top of that deposit fee,
01:39there is a $1 to $3.25 transaction fee
01:43every time the student buys lunch.
01:46The CFPB estimates these companies are raking in
01:49between $28 million and $92 million
01:52from students paying full price for lunch
01:55and an additional $1.9 million to $10.2 million
01:59for students who qualify
02:01for the reduced price student lunch program.
02:04That'll do it for your daily briefing
02:05from the New York Stock Exchange.
02:07I'm Conway Gittens with The Street.