MySchoolBucks Lawsuit Ends, Court Approves $18.25M Settlement For Hidden School Lunch Fees, Here's What Parents Need To Know

The MySchoolBucks lawsuit—officially Story v. Heartland Payment Systems—resulted in an $18.25 million settlement after parents claimed the company illegally charged “program fees” when they uploaded money for school lunches. On September 25, 2025, the court issued an order granting final approval of the class action settlement, meaning payments will soon reach eligible families who submitted claims. Parents collectively paid $100 million in fees each year through school lunch payment platforms, with MySchoolBucks users alone paying an estimated $192 million in fees between 2013 and 2019.

The settlement marks a major victory for families who paid what many considered “junk fees” just to put money in their children’s lunch accounts. With court approval finalized, the question now shifts from “Will there be compensation?” to “When will payments arrive?”

What Is the MySchoolBucks Lawsuit?

The MySchoolBucks lawsuit was filed in the Middle District of Florida (Case No. 3:19-cv-724) by two people who sued Heartland Payment Systems, LLC for charging “Program Fees” every time people uploaded money to the MySchoolBucks website for students to buy school lunches. The plaintiffs—Max Story and others—argued these fees violated consumer protection laws and credit card company rules.

According to the lawsuit, Heartland Payment Systems violated consumer protection laws and credit card company rules when misrepresenting “program fees” to MySchoolBucks users. The company allegedly disguised credit and debit card surcharges as legitimate expenses required by schools, when in reality the institutions never charged these fees.

Heartland Payment Systems operates MySchoolBucks, a payment platform used by more than 2 million families with students in 30,000 schools. The platform allows parents to conveniently upload money online for their children’s lunch accounts, but each transaction came with added fees that ranged from $2.75 to $3.25.

MySchoolBucks Lawsuit Ends, Court Approves $18.25M Settlement for Hidden School Lunch Fees, Here's What Parents Need to Know

What Were the Main Claims Against Heartland Payment Systems?

The lawsuit centered on three core allegations that resonated with millions of frustrated parents.

Illegal Program Fees

Plaintiffs claimed that Heartland was not legally allowed to charge MySchoolBucks users these Program Fees, resulting in users paying more money than they should have to upload money for their students to buy lunch. Unlike standard credit card processing fees, these charges appeared excessive compared to actual costs.

Court documents revealed that less than one-third of fee revenue, on average, went toward credit card interchange fees. This meant Heartland kept the majority of collected fees as profit rather than passing costs to payment processors.

Deceptive Fee Disclosure

The Florida dad who sued, Max Story, alleged the company had duped parents into paying excessive fees in part by insinuating the schools were collecting the fees. Many parents believed they had no choice but to pay these charges to ensure their children could eat lunch.

The lawsuit claimed Heartland never properly disclosed that schools didn’t require or receive these program fees. Parents thought they were paying legitimate school-related charges when actually funding Heartland’s revenue stream.

Disproportionate Impact on Low-Income Families

Families on reduced-price lunches, earning less than $32,000 per year for a family of four, paid as much as 60 cents in fees for every $1 spent on lunch. Even a $3 fee on a $30 deposit represented a 10% surcharge—three to four times more than typical credit card processing fees.

This disproportionate burden meant the families who could least afford extra charges paid the highest percentage in fees. For some low-income families, these fees significantly reduced the actual lunch money available for their children.

What Is the Current Status of the MySchoolBucks Settlement?

The settlement has reached its final milestone with court approval granted.

Final Approval Granted September 2025

On September 25, 2025, the Court issued an Order Granting Final Approval of Class Action Settlement and Plaintiffs and Class Counsel’s Petition for Attorneys’ Fees and Reimbursement of Expenses, and a Final Judgment. This means the settlement is now official and binding.

The judge conducted a fairness hearing to ensure the settlement terms protected class members’ interests. With approval granted, the litigation phase has concluded and the claims administration process moves forward.

Payment Distribution Timeline

Payments will begin distribution after any appeals are resolved. While the settlement received final approval, Heartland retains the right to appeal certain aspects of the judgment, though this would delay payments to eligible claimants.

Based on typical class action timelines, eligible families who submitted claims by the August 20, 2025 deadline can expect payments in late 2025 or early 2026. The exact timing depends on whether appeals are filed and how quickly they’re resolved.

Claim Deadline Has Passed

To receive payment from the Settlement, by August 20, 2025, you must submit a Claim online. Unfortunately, if you missed this deadline, you cannot receive payment from the settlement fund regardless of how many fees you paid.

The court strictly enforces claim deadlines in class action settlements. No extensions were granted, and late submissions cannot be accepted even for compelling reasons.

Who Was Eligible for the MySchoolBucks Settlement?

Understanding eligibility criteria helps clarify who qualifies for compensation and who doesn’t.

Settlement Class Definition

The Settlement Class includes everyone who used credit or debit cards to upload money to MySchoolBucks to purchase school lunches between June 18, 2013 and July 31, 2019. However, there’s a critical timing requirement many people overlook.

If you DID NOT upload money to MySchoolBucks for school lunches on or after January 1, 2015, you are NOT part of the Settlement Class and cannot receive a payment. This means your last transaction must have occurred in 2015 or later to qualify.

Specific Eligibility Requirements

To qualify for the MySchoolBucks settlement, you must meet ALL of these criteria:

Transaction Method: You used a credit or debit card (not electronic checks or cash) to upload money Platform: Funds were uploaded through the MySchoolBucks website specifically Purpose: Money was designated for purchasing school lunches Date Range: Transactions occurred between June 18, 2013 and July 31, 2019 Recency Requirement: Your final qualifying transaction occurred on or after January 1, 2015

Parents who received settlement notices by email or postcard likely meet these requirements, as Heartland’s records identified them as class members.

Who Is NOT Eligible

Several groups fall outside the settlement class despite using MySchoolBucks:

Users who only made electronic check payments (no credit/debit card transactions)
Parents whose last transaction occurred before January 1, 2015
People who uploaded money for purposes other than school lunches
Users who only began using MySchoolBucks after July 31, 2019
Families who opted out of the settlement by August 28, 2025

If you’re uncertain about eligibility, the settlement website allowed verification through Heartland’s records, though the claim deadline has passed.

How Much Compensation Could Eligible Parents Receive?

Payment amounts vary significantly based on individual usage patterns and total claim volume.

Pro Rata Distribution Method

How much you are paid depends on how many Program Fees you paid on MySchoolBucks for school lunches between June 18, 2013 and July 31, 2019. How much you are paid also depends on how many people submit Claims. This pro rata approach means frequent users receive proportionally larger payments.

If you paid $50 in program fees during the class period, you’ll receive approximately twice the payment of someone who paid $25 in fees. The exact multiplier depends on total valid claims submitted.

Factors Affecting Payment Amounts

Three key variables determine individual settlement payments:

Your Total Fees Paid: The settlement administrator calculated fees based on Heartland’s transaction records. Parents with multiple children or who made frequent small deposits paid more total fees.

Total Valid Claims Submitted: The number of valid claims submitted by eligible class members directly impacts individual payments. Fewer claims mean larger per-person distributions from the $18.25 million fund.

Administrative Deductions: The amount deducted from the settlement fund for attorneys’ fees, litigation costs, service awards to the lead plaintiffs and administrative expenses reduces the amount available for distribution. These deductions were approved by the court as part of final approval.

Estimated Payment Range

Based on the 2 million families who used MySchoolBucks, if even 10% file claims, individual payments could range from modest amounts to hundreds of dollars for frequent users. Heavy users who paid hundreds in fees over the six-year period could receive substantial compensation.

Parents who made occasional deposits might receive smaller amounts, potentially $20-50 depending on claim volume. The settlement website indicated that exact amounts couldn’t be calculated until after the claim deadline passed.

What Happened at the Fairness Hearing?

The Fairness Hearing was held before the judge on September 25, 2025 at 2:00 p.m. E.T. in Courtroom 10D, Bryan Simpson United States Courthouse, 300 North Hogan Street, Jacksonville, FL 32202. The judge evaluated whether the settlement terms were fair, reasonable, and adequate for class members.

During fairness hearings, judges consider several factors:

Whether the settlement amount adequately compensates affected consumers
If class counsel negotiated effectively on behalf of class members
Whether proposed attorneys’ fees are reasonable given the recovery achieved
Any objections filed by class members who oppose settlement terms
The likelihood of success if litigation continued versus settlement benefits

The judge approved the settlement after determining it provided fair compensation considering the risks and costs of continued litigation. This approval makes the settlement binding on all class members who didn’t opt out by the August 28, 2025 deadline.

Are MySchoolBucks Fees Still Being Charged?

Despite the settlement, Heartland continues charging program fees—in fact, fees increased in 2024 to $3.25 for credit or debit card payments and $2.75 for electronic checks. The settlement only addresses fees charged between 2013 and 2019, not current practices.

Heartland School Solutions President Jeremy Loch, in a letter to districts, cited rising payment processing interchange fees and increases in operational costs as the reason for the increase. However, consumer advocates argue these fees remain excessive compared to actual processing costs.

Parents using MySchoolBucks today should understand they’re still paying these program fees with each transaction. Some schools offer alternative payment methods that may have lower or no fees, such as:

Direct deposits at school offices
Electronic check payments (lower fees than credit/debit cards)
Automatic payment plans that reduce transaction frequency
Alternative payment platforms used by some districts

Consumer advocates continue pushing for transparency and regulation of school lunch payment fees. From North Carolina to Maryland, legislators have ordered more transparency with itemized charges for reasonable fees associated with processing orders.

What Legal Defenses Did Heartland Present?

Heartland says that it did not do anything wrong. The judge has not decided who is right or wrong in this lawsuit. Instead, Heartland agreed to pay $18,250,000 to settle the case. By settling, Heartland avoided a lengthy trial that could have resulted in even larger damages.

Heartland likely argued that:

Program fees were clearly disclosed during checkout
Fees covered legitimate operational and processing costs
Parents voluntarily chose to use the MySchoolBucks platform
Schools could have offered alternative payment methods

The company maintained it acted within legal boundaries while simultaneously agreeing to pay substantial settlement funds. This is common in class action litigation, where defendants settle to avoid prolonged legal battles and negative publicity without admitting wrongdoing.

If you’re facing similar issues with payment processors or service providers, understanding how to pay for a divorce lawyer with no money or exploring family law attorney payment plans can help you access legal representation when financial resources are limited.

How Does This Compare to Other Junk Fee Lawsuits?

The MySchoolBucks settlement fits within a broader pattern of consumer litigation targeting hidden fees and deceptive pricing practices.

Similar Recent Settlements

Attorneys working with ClassAction.org have reason to believe some companies may be violating certain state-specific laws when it comes to how fees are disclosed, represented and/or charged. Current investigations target companies including G Fuel, SeatGeek, Westlake, and StubHub for potentially illegal fee practices.

These investigations focus on “drip pricing”—a practice where fees are added late in checkout processes, making true costs unclear until consumers have already invested time in transactions. This mirrors allegations in the MySchoolBucks case where parents didn’t realize the full cost of uploading lunch money.

Mass Arbitration as Alternative to Class Actions

Mass arbitration occurs when hundreds or thousands of consumers file individual arbitration claims against the same company over the same issue at the same time. This approach has emerged as an alternative when companies include arbitration clauses in terms of service.

Unlike class actions that require court approval and follow strict procedural rules, mass arbitration allows affected consumers to pursue individual claims simultaneously. This can pressure companies to settle quickly, as arbitration filing fees multiply rapidly.

Legislative Response to Payment Processing Fees

Lawmakers in multiple states have responded to consumer complaints about excessive payment platform fees. Maryland and North Carolina have enacted transparency requirements, while other states are considering similar legislation.

Consumer advocates argue that families shouldn’t have to pay excessive fees just to provide lunch money for their children. The MySchoolBucks settlement demonstrates that courts may find these practices violate existing consumer protection laws even without new legislation.

Similar principles apply across legal contexts. Just as consumers deserve transparency about payment processing fees, parties in employment discrimination cases deserve to understand all costs associated with legal representation.

Resources and Legal Support for Affected Parents

While the claim deadline has passed for this settlement, parents facing issues with payment processors or consumer fraud have several resources available.

Settlement Administration

Contact the Heartland Settlement Administrator with questions about your claim status or payment:

Heartland Settlement Administrator
c/o Eisner Advisory Group LLC
P.O. Box 3413
Baton Rouge, LA 70821
Phone: 833-530-0046
Email: [email protected]

Class Counsel

The attorneys who represented the settlement class can answer questions about the case:

Lieff Cabraser Heimann & Bernstein, LLP
Visit: https://www.lieffcabraser.com/consumer/heartland/

Class counsel successfully negotiated the $18.25 million settlement and can provide information about the case’s resolution.

Consumer Protection Organizations

Consumer Federation of America continues advocating against junk fees in various industries. Adam Rust of the Consumer Federation of America stated: “There’s no place for school junk fees. Period.”

Organizations like Consumer Action maintain databases of open class action settlements and consumer protection resources. Their website helps consumers identify eligible settlements and understand their rights.

Future Legal Action

If you decide NOT to do anything, you are still legally considered a member of the Settlement Class. This means you cannot start another lawsuit, continue another lawsuit, or be part of any other lawsuit asking Heartland to return Program Fees paid between June 18, 2013 and July 31, 2019.

However, fees charged after July 31, 2019 are not covered by this settlement. If you believe recent fees violate consumer protection laws, consulting with a consumer protection attorney about potential claims may be worthwhile.

Understanding your legal options is crucial whether you’re dealing with payment processor fees, employment law violations, or other consumer protection issues.

Frequently Asked Questions

What was the MySchoolBucks lawsuit about?

The MySchoolBucks lawsuit alleged that Heartland Payment Systems illegally charged “program fees” to parents when they uploaded money via credit or debit card for their children’s school lunch accounts. Plaintiffs claimed these fees violated consumer protection laws and that parents overpaid because the fees weren’t properly disclosed.

How much is the MySchoolBucks settlement worth?

Heartland agreed to pay $18,250,000 to settle the case. This settlement fund will be distributed among eligible class members who submitted valid claims by the August 20, 2025 deadline, with payment amounts varying based on how many fees each person paid during the class period.

Who is eligible for the MySchoolBucks settlement?

The Settlement Class includes everyone who used credit or debit cards to upload money to MySchoolBucks to purchase school lunches between June 18, 2013 and July 31, 2019. However, you must have uploaded money at least once on or after January 1, 2015 to qualify.

When will MySchoolBucks settlement payments be distributed?

Payments will begin distribution after the court’s final approval becomes effective and any appeals are resolved. With final approval granted on September 25, 2025, eligible claimants can expect payments in late 2025 or early 2026, assuming no appeals delay the process.

Can I still file a claim for the MySchoolBucks settlement?

No. The claim deadline was August 20, 2025. Missing the August 20 deadline means forfeiting your right to compensation, regardless of how many program fees you paid. The court strictly enforces these deadlines and no extensions were granted.

Does filing a claim affect my current MySchoolBucks account?

Filing a settlement claim will not impact your current MySchoolBucks account, your ability to use the service, or your relationship with your child’s school. Schools were not parties to the lawsuit and don’t receive notification about which parents filed claims.

Are MySchoolBucks fees still being charged?

Yes. The settlement only addresses fees charged between 2013 and 2019. MySchoolBucks increased its fees in 2024 to $3.25 for credit or debit card payments and $2.75 for electronic checks. Parents using the platform today continue paying these program fees with each transaction.

Disclaimer: This information is for educational purposes only and does not constitute legal advice. Consult an attorney specializing in education law or consumer protection for legal guidance. Settlement administration questions should be directed to the Heartland Settlement Administrator at the contact information provided above.

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About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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