HB 4134

relating to a convenience fee for processing electronic payments
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter E, Chapter 348, Finance Code, is
amended by adding Section 348.416 to read as follows:
Sec. 348.416.  CONVENIENCE FEE FOR PROCESSING ELECTRONIC
PAYMENTS AUTHORIZED.  (a)  In this section, "electronic payment"
means a payment made by credit card, debit card, electronic funds
transfer, electronic check, or other electronic method.
(b)  A holder of a retail installment contract or the
holder's agent may collect a fee for processing a retail buyer's
electronic payment under the contract only if:
(1)  the fee is reasonably related to the expense
incurred by the holder or holder's agent in processing the
(2)  the fee does not exceed the lesser of $10 or five
percent of the amount of the payment; and
(3)  the holder or holder's agent:
(A)  allows the buyer to make a payment by a method
other than an electronic payment that does not incur a fee;
(B)  does not establish electronic payment as the
(C)  informs the buyer of the following before the
buyer agrees to make an electronic payment:
(i)  the amount of the fee to be charged
(ii)  that the buyer may make a payment by an
alternative method that does not incur a fee, including by check,
(iii)  that the holder or holder's agent may
not establish electronic payment as the expected form of payment.
SECTION 2.  This section is effective September 1, 2025.