Fees for Electronic Payment Services in the School

On November 1, 2024, the U.S. Department of Agriculture (USDA) issued Policy Memorandum SP 04-2025 Fees for Electronic Payment Services in the School Meal Programs. The memorandum clarifies policy related to fees associated with electronic (online) payments in the School Meal Programs and ensures students who are determined eligible for free or reduced-price meal benefits receive the benefits they qualify for without incurring additional fees. Effective school year (SY) 2027–28, families with students eligible for free or reduced-price meals must not be charged any fees associated with the cost of a meal, including fees for using electronic payment services.

Please note the policy requires school food authorities (SFA) to provide families with at least one free and accessible method of making deposits to a student’s account, even if student’s accounts are only used to purchase a la carte foods. As an alternative, SFA’s may charge online services to the nonprofit school food service account (cafeteria fund) if the service is determined to be reasonable and necessary for the operation of school food service.

A California Department of Education management bulletin is forthcoming.

The USDA policy may be accessed through the USDA food and Nutrition Service webpage .

If you have questions regarding fees for School Meal Programs, please reach out to the Resource Management Unit at SNPcafefundquestions@cde.ca.gov.

Questions: Nutrition Services Division | 800-952-5609

Last Reviewed: Friday, January 31, 2025

Related Content

Cafeteria Fund Guidance
Provides Local Educational Authorities (LEA) with information and instructions pertaining to federal and State statutes and regulations that govern school cafeteria funds.
Procurement in School Nutrition Programs
Federal procurement regulations when contracting with food service management companies (FSMC), vendors, or competitively procuring food.
School Nutrition Programs Management Bulletins
School Nutrition Programs (SNP) management bulletins for sponsors of the National School Lunch Program, School Breakfast Program, Special Milk Program, and State Meal Program.

Trending in Nutrition

Recently Posted in Nutrition

Farm to School Needs Assessment 2025 (added 18-Feb-2025)
The Nutrition Services Division (NSD) seeks to understand the resources and support you need to start, sustain, or expand your Farm to School efforts.
2025–26 FFVP Request for Applications Available (added 14-Feb-2025)
The CDE NSD announces a grant opportunity for elementary schools to participate in the FFVP. The FFVP grant period is July 1, 2025–June 30, 2026. All eligible agencies, both current FFVP grantees and new applicants, must respond online to this RFA.
Tri-Union Seafoods Issues Tuna Recall (added 13-Feb-2025)
Tri-Union Seafoods Issues recall of select tuna cans due to clostridium botulinum risk.
2025 SFSP Reimbursement Rates (added 11-Feb-2025)
The Summer Food Service Program (SFSP) 2025 reimbursement rates are now available.
2025–26 CNP Reimbursement Rates (added 10-Feb-2025)
Child Nutrition Program (CNP) meal reimbursement rates.

Non-Congregate Meal Service in Rural Areas: Q&A #3 (added 10-Feb-2025)
The USDA issued a policy memorandum Non-Congregate Meal Service in Rural Areas: Questions and Answers #3, which provides further clarification on rural non-congregate requirements.
Fees for Electronic Payment Services in the School (added 31-Jan-2025)
The memorandum clarifies policy related to fees associated with electronic (online) payments and ensures students determined eligible for free or reduced-price meal benefits receive the benefits.
Webinars: Scratch Cooking & Reducing Sodium (added 30-Jan-2025)
The CICN hosts a live webinar addressing How to Transition to Scratch Cooking in Schools - First Steps. The USDA Meal Talk Webinar to share strategies to reduce sodium and engage students in menu planning.
SY 2025–26 USDA Foods Available List and Pricing (added 29-Jan-2025)
This report provides an estimated price per pound, per case, and per truck for all USDA Foods items available in school year (SY) 2025-26.
Waiver for Non-congregate Meals During Ramadan (added 14-Jan-2025)
The Waiver for Non-congregate Meals During Ramadan allows approved school food authorities to offer non-congregate meals to students fasting during Ramadan.