Bill > SB2026

This bill establishes new regulations for swipe fees (transaction fees charged by payment card networks) in electronic payment transactions in Texas, focusing on how state or local taxes and gratuities are treated in fee calculations. The bill defines key terms like "electronic payment transaction," "payment card network," and "swipe fee," and requires that state or local taxes and gratuities be excluded from the total amount on which swipe fees are calculated. Payment card networks must either deduct these amounts from swipe fee calculations at the time of transaction settlement or provide a rebate to merchants for the corresponding fees. The bill prohibits payment card issuers or networks from manipulating fee calculations to circumvent these requirements. If a merchant cannot capture tax or gratuity amounts at the point of sale, the payment card network must accept proof and provide a rebate within 180 days. The bill also establishes a civil penalty of up to $1,000 per violation, which can be enforced by the attorney general through legal action in Travis County or the county where the violation occurred. Any collected penalties will be deposited in the state's general revenue fund, and violators must refund merchants any improperly charged swipe fees. The law is set to take effect on September 1, 2025.