Heartland Payment Systems MySchoolBucks Settlement Offers Fee Refunds in Class Action Victory

Parents across America just won a major victory against hidden school lunch payment fees.

If you uploaded money to MySchoolBucks for school lunches between 2013 and 2019, you could receive compensation from an $18.25 million class action settlement. 

The settlement addresses years of improper "program fees" that Heartland Payment Systems allegedly charged without proper disclosure.

What Is the Heartland MySchoolBucks Lawsuit?

This class action litigation affects millions of parents who claim they unknowingly paid excessive charges when adding funds to their children's lunch accounts.

State statute violations 

According to the lawsuit, Heartland Payment Systems LLC violated consumer protection laws and credit card company rules when misrepresenting "program fees" to MySchoolBucks users to enrich the company unjustly.

Fee deception allegations 

The plaintiffs say that Heartland Payment Systems disguised credit and debit card surcharges as legitimate expenses required by schools. But in reality, the institutions never charged these fees, and the money went directly to Heartland.

Court records show over 2 million families with students in 30,000 schools used MySchoolBucks during the class period.

While Heartland has not admitted wrongdoing, the company agreed to pay $18.25 million to resolve all class action claims.

More on Heartland Payment Systems

The lawsuit against Heartland Payment Systems exposed a widespread scheme that affected families nationwide. 

Failure to disclose 

According to Visa and MasterCard's standard disclosure requirements, Heartland must have done the following for each $2.49 credit card and $1.95 debit card transaction made during the class period: 

• Clearly identify surcharges as credit card fees.
• Display the exact percentage or amount before processing.
• State that merchants, not schools, impose the charges.
• Confirm fees don't exceed actual processing costs.

Heartland's MySchoolBucks website allegedly falsely stated that "your school district may require a program fee," leading parents to believe that schools mandated and received these payments. 

According to court records, the company also claimed schools received "the full payment," concealing that Heartland kept all program fees for itself.

Financial Impacts on School Families

Between 2013 and 2019, Heartland collected an estimated $192 million in program fees from parents using MySchoolBucks. 

Court documents revealed that less than one-third of this revenue covered actual credit card interchange fees, meaning Heartland profited enormously from these hidden charges.

Disadvantaged households paid more

Evidence also showed that low-income families suffered disproportionately from Heartland’s fee structure. 

Parents who could only afford small, frequent deposits paid the flat fee multiple times, sometimes reaching 25% of their total deposits. 

• Low-income parents depositing $10 weekly would pay $2.49 each time—nearly 25% in fees. Over a school year, this family would pay more than $80 just in transaction fees.
• A $20 deposit incurred a 12.45% fee with credit cards
• Parents depositing $45 paid 5.53% in surcharges
• Families making weekly $10 deposits faced effective rates exceeding 20%.

Real Stories from Parents Who Paid MySchoolBucks Fees

Behind the lawsuit and settlement are real families who struggled with these hidden fees. 

The named plaintiffs' experiences show how the alleged scheme affected everyday families trying to provide for their children.

Max’s four-year battle

Max Story unknowingly paid 56 program fees over four years while funding his children's lunch accounts. Despite his legal background and involvement in his children's schools, the father never suspected the fees went to Heartland rather than supporting school programs.

Story typically deposited $45 at a time, paying $2.49 per transaction—a 5.53% surcharge but soon questioned the fees after requesting public records from Duval County Public Schools through FOIA requests.

Story's documents revealed that schools never required these fees, and Heartland kept every penny. 

Foster child experience

Foster parent and plaintiff Nancy Murrey-Settle faced a different challenge with MySchoolBucks. Her foster child's school cafeteria wouldn't accept cash payments, forcing her to use MySchoolBucks.

Murrey-Settle's $10 deposits triggered a 25% surcharge of $2.49. Despite her child receiving free lunch through the foster care program, Murrey-Settle continued paying these excessive fees for four years just so her foster daughter could have fruit not offered on the free menu.

The burden became so frustrating that Murrey-Settle stopped using MySchoolBucks entirely once her adopted daughter reached sixth grade, highlighting how the fee structure particularly harmed families making small, necessary deposits.

Who Can File a Heartland Settlement Claim?

Determining eligibility for the Heartland settlement claims depends on when and how you used MySchoolBucks. The settlement class includes many parents who uploaded money for school lunches during the six-year eligibility period.

Eligibility requirements 

You may qualify as a member of the settlement class if:

• You're a U.S. resident who used a credit or debit card to upload money to MySchoolBucks.
• The funds you uploaded specifically purchased school lunches (not other school items).
• Your transactions occurred between June 18, 2013, and July 31, 2019.
• Your last qualifying transaction happened on or after January 1, 2015.

The settlement website at MSBFeeSettlement.com provides details and tools to verify eligibility.

Filing your claim requires minimal effort since the settlement administrator uses Heartland's records to verify eligibility and calculate payments. 

You don't need receipts, bank statements, or other documentation proving your MySchoolBucks transactions.

If you received a settlement notice, locate the unique settlement ID number included in the communication. This identifier streamlines the claim process and confirms your pre-verified status in the settlement class.

Parents without settlement notices can still file claims through the settlement website. 

The system allows alternative verification methods, including entering the email address associated with your MySchoolBucks account or providing basic information about your transactions during the class period.

How Much Money Can You Receive from the Settlement?

Your payment from the Heartland Payment Systems settlement depends on several factors, with the primary consideration being how many program fees you paid during the class period.

A pro rata distribution method directly correlates your compensation with the number of program fees you paid on MySchoolBucks for school lunches. 

Parents who paid more fees will receive larger payments from the settlement fund.

Several factors affect individual payment amounts:

• Amount paid between June 2013 and July 2019.
• Overall participation rate (how many eligible parents submit claims).
• Deductions for administrative costs and legal fees.
• Whether you used credit cards ($2.49 fees) or debit cards ($1.95 fees)

The settlement administrator must wait until after the August 20, 2025 deadline to calculate exact payment amounts. 

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. 

Important Deadlines You Cannot Miss

Mark these dates on your calendar to protect your rights:

• August 20, 2025: Final deadline to submit claims—no exceptions granted
• August 28, 2025: Last day to opt out of the settlement or file objections
• September 25, 2025: Final approval hearing before the federal judge
• Late 2025/Early 2026: Expected payment distribution (pending final approval)

Missing the August 20 deadline means forfeiting your right to compensation, regardless of how many program fees you paid. The settlement administrator strictly enforces these deadlines as required by the court order.

Protecting Yourself from School Payment Fees

When evaluating payment platforms, always watch for red flags like vague fee descriptions, claims that schools require fees, or excessive charges compared to the deposit amount. 

Remember that legitimate payment processors clearly identify their fees and provide detailed disclosures before charging your account.

The Heartland class action settlement establishes precedent for nationwide transparency in school payment processing. Parents now have stronger grounds to challenge excessive fees and demand clear disclosures about where their money goes.