MySchoolBucks Lawsuit, Court Just Approved $18.25M Settlement – Here’s What Shocked Parents Need to Know
LATEST UPDATE: Settlement Finalized (January 2026)
On September 25, 2025, the court granted final approval of the $18.25 million MySchoolBucks settlement. Payments are expected in late 2025 or early 2026, assuming no appeals delay distribution. The claim deadline has passed (August 20, 2025), so no new claims can be filed.
The Bottom Line: Heartland Payment Systems agreed to pay $18.25 million to settle a class action lawsuit claiming it illegally charged “program fees” every time parents uploaded money to MySchoolBucks for school lunches. The lawsuit alleged these fees weren’t legally allowed, causing parents to overpay. If you used a credit or debit card to add money to MySchoolBucks between June 18, 2013 and July 31, 2019, and your last transaction was on or after January 1, 2015, you were part of this settlement class. The court has now approved the deal, and eligible parents who filed claims will receive payments soon.
Here’s what makes this lawsuit particularly shocking: between 2013 and 2019, parents paid MySchoolBucks an estimated $192 million in fees—a number the company tried to keep sealed in court documents. Even more surprising? Court records showed that less than one-third of that revenue actually went toward credit card processing costs. The rest was profit.
For millions of parents across America, those $2.49 or $1.95 “program fees” seemed like a necessary evil—just the cost of conveniently putting money on their kids’ lunch accounts. But according to the lawsuit, those fees were never supposed to be charged in the first place.
What MySchoolBucks Is and Why Parents Were Furious
MySchoolBucks is a payment platform run by Heartland Payment Systems (now part of Global Payments) that lets parents electronically add money to their children’s school lunch accounts. Instead of sending cash or checks to school, you go online, enter your payment information, and load up the account.
Sounds simple. But there’s a catch: every single time you add money, you get hit with a fee. For years, those fees ranged from $1.95 for debit cards to $2.49 for credit cards. And if you’re a parent who needs to add $20 every week or two? Those fees add up fast.
More than 2 million families with students in 30,000 schools use MySchoolBucks, making it the dominant player in the school lunch payment market. And here’s the kicker: fees charged to parents collectively cost U.S. families upward of $100 million per year, according to a Consumer Financial Protection Bureau report.
What the Lawsuit Actually Alleged
The lawsuit, filed by plaintiffs Max Story and others in the U.S. District Court for the Middle District of Florida (Case No. 3:19-cv-724), made some serious claims:
The core allegation: Heartland was not legally allowed to charge MySchoolBucks users these “program fees”. The plaintiffs claimed these fees were disguised credit card surcharges that violated both consumer protection laws and credit card company rules.
The deceptive part: According to the lawsuit, Heartland allegedly misled parents by implying the schools were collecting the fees or that they were necessary processing costs. In reality, the fees far exceeded actual credit card processing expenses and primarily enriched the company.
The impact: Parents paid more than they should have every single time they loaded their kids’ lunch accounts. For families making frequent small deposits—especially low-income families who couldn’t afford to load large amounts at once—the fees became a significant burden.
Who Filed This Lawsuit and What They Discovered
Two parents filed this class action lawsuit representing millions of other MySchoolBucks users. During the legal process, some eye-opening details emerged:
- Between 2013 and 2019, parents paid MySchoolBucks approximately $192 million in program fees
- Less than one-third of that revenue went toward actual credit card interchange fees
- The company fought to keep these numbers sealed, but the court made them public
Consumer advocates were particularly outraged by the impact on low-income families. Families on reduced-price lunches pay as much as 60 cents in fees for every $1 spent on lunch, according to regulators—meaning some of the most financially vulnerable families were hit hardest.
The $18.25 Million Settlement: Here’s What Happened
Rather than continue fighting in court, Heartland Payment Systems agreed to settle. Here’s the deal:
Settlement Amount: $18,250,000 total
Who’s Covered: Everyone who used a credit or debit card to upload money to MySchoolBucks for school lunches between June 18, 2013 and July 31, 2019—BUT you had to have made at least one transaction on or after January 1, 2015 to qualify.
Current Status: On September 25, 2025, the court issued an order granting final approval of the class action settlement and plaintiffs’ petition for attorneys’ fees. The settlement is now official and binding.
What Heartland Says: The company denies any wrongdoing. They settled “to avoid the costs and risks of prolonged litigation,” according to court documents.
Could You Have Gotten Money? (Claim Deadline Has Passed)
If you used MySchoolBucks during the class period, you were automatically part of the settlement class. To receive money, you needed to file a claim by August 20, 2025. That deadline has now passed, so no new claims can be filed.
Who Was Eligible:
- Used a credit or debit card (not electronic checks or cash)
- Added money specifically for school lunches
- Made transactions between June 18, 2013 and July 31, 2019
- Made at least one transaction on or after January 1, 2015
Who Wasn’t Eligible:
- Only used electronic check payments
- Last transaction was before January 1, 2015
- Only started using MySchoolBucks after July 31, 2019
- Opted out of the settlement
How Much Will People Actually Get?
Payment amounts varied based on how many fees you paid during the class period. Heavy users who paid hundreds in fees over the six-year period could receive substantial compensation, while parents who made occasional deposits might receive smaller amounts, potentially $20-50 depending on claim volume.
The exact amounts depended on:
- How many program fees you personally paid
- Total number of valid claims submitted
- Deductions for attorneys’ fees and administrative costs
More fees paid = bigger share of the settlement fund. It’s called “pro rata” distribution—your payment was proportional to your fees compared to everyone else’s.
The Shocking Part: Fees Are Still Being Charged Today
Here’s what really gets parents upset: despite settling this lawsuit about past fees, MySchoolBucks continues charging program fees today. In fact, fees increased in 2024 to $3.25 for credit or debit card payments and $2.75 for electronic checks.
The settlement only covers fees charged between 2013 and 2019. Anything charged after July 31, 2019? Not covered.
Heartland’s president cited rising processing costs and operational expenses as reasons for the increase. But consumer advocates argue the fees remain excessive compared to actual credit card processing costs—which typically run just 2-3% of a transaction, not flat fees that can exceed 10% on small deposits.
What This Means for Parents Using MySchoolBucks Now
If you’re still using MySchoolBucks today, here’s what you should know:
You’re still paying those program fees. The settlement didn’t change current practices.
You might have alternatives. Some schools offer fee-free options:
- Paying with cash or check directly to the school (no fee)
- ACH/electronic check transfers (lower fees)
- Some districts cover the fees themselves or use different payment processors
Your rights matter. If you believe current fees violate consumer protection laws, you can:
- File a complaint with the Federal Trade Commission (www.ftc.gov)
- Contact the Consumer Financial Protection Bureau (www.consumerfinance.gov)
- Consult a consumer protection attorney about potential claims
Stay informed. Consumer advocates continue pushing for transparency and regulation of school lunch payment fees nationwide.
Important Dates and Deadlines (Now Closed)
All settlement deadlines have passed:
- August 20, 2025: Claim deadline (CLOSED)
- August 28, 2025: Opt-out and objection deadline (CLOSED)
- September 25, 2025: Final approval hearing (COMPLETED)
- Late 2025/Early 2026: Expected payment distribution
Where to Get Official Information
Official Settlement Website: www.MSBFeeSettlement.com
Settlement Administrator: 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 (Attorneys Representing Parents): Lieff Cabraser Heimann & Bernstein, LLP (Contact information available on settlement website)
Consumer Protection Resources:
- Federal Trade Commission: www.ftc.gov
- Consumer Financial Protection Bureau: www.consumerfinance.gov
Frequently Asked Questions
Can I still file a claim for the MySchoolBucks settlement?
No. The claim deadline was August 20, 2025. That deadline has passed, and no extensions are available.
When will eligible claimants receive their payments?
Based on typical class action timelines, eligible families who submitted claims can expect payments in late 2025 or early 2026, assuming no appeals delay the process.
Does this settlement cover current MySchoolBucks fees?
No. The settlement only addresses fees charged between June 18, 2013 and July 31, 2019. Current fees are not covered.
What if I used MySchoolBucks but paid with electronic checks instead of credit/debit cards?
You were not part of the settlement class. The settlement only covered credit and debit card transactions.
Will receiving money from this settlement affect my MySchoolBucks account?
No. Filing a claim doesn’t impact your current account, your ability to use the service, or your relationship with your child’s school.
Can I avoid MySchoolBucks fees today?
Check with your school district about alternatives. Many schools still accept cash or check payments without fees. Some districts also cover the processing fees themselves or use different payment systems.
What legal violations did the lawsuit allege?
The lawsuit claimed Heartland violated consumer protection laws and credit card company rules by disguising excessive surcharges as legitimate “program fees” that parents were required to pay.
Did Heartland admit wrongdoing?
No. Heartland says it did not do anything wrong and settled the case to avoid prolonged litigation costs.
Are there similar lawsuits against other school lunch payment companies?
Consumer protection attorneys are investigating other school meal payment platforms for similar fee practices. If you’ve experienced issues with platforms other than MySchoolBucks, you may want to consult a consumer protection attorney.
What should I do if I think recent MySchoolBucks fees are illegal?
You can file a complaint with the FTC or CFPB, or consult with a consumer protection attorney about whether you have claims related to fees charged after July 31, 2019.
The Bigger Picture: Why This Matters
This lawsuit shines a light on a growing problem: the hidden costs of supposedly “convenient” payment systems. What seemed like a small fee—$2.49 here, $1.95 there—added up to nearly $200 million over six years for one company alone.
For families struggling to make ends meet, these fees represent real money. A parent adding $20 to a lunch account every two weeks pays over $50 annually just in fees. Low-income families, who can’t afford larger deposits and face more frequent transactions, get hit the hardest.
The settlement provides some compensation for past fees, but it doesn’t solve the underlying problem. MySchoolBucks and similar platforms continue charging fees today, and parents often feel they have no choice but to pay them.
Consumer advocates argue that schools should either absorb these costs or provide genuinely free alternatives. After all, when a school requires electronic payment systems but those systems charge excessive fees, who’s really benefiting? Not the families trying to feed their kids lunch.
Bottom Line: If you filed a claim by the August 20, 2025 deadline, watch for your payment in late 2025 or early 2026. If you’re still using MySchoolBucks, know that you’re still paying fees—and you might have alternatives. And if you believe those fees are excessive or unfair, you have the right to speak up to consumer protection agencies or seek legal advice.
This settlement may be closed, but the conversation about school lunch payment fees is far from over.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific questions about your situation, consult a qualified attorney.
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.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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