Bill > SB2056

This bill establishes new regulations for credit card transactions in Texas, focusing on preventing anticompetitive practices by credit card issuers and payment card networks. The legislation applies to financial institutions with consolidated assets over $85 billion and prohibits several specific practices, including fixing or conspiring to fix "swipe fees" (interchange and assessment fees), charging fees for disputed transactions without proper justification, and penalizing merchants who offer discounts for alternative payment methods like cash or debit cards. Credit card issuers must now disclose swipe fees on monthly statements, providing cardholders with detailed information about transaction-related charges. Payment card networks are also restricted from requiring merchants to accept all credit cards or charging fees without clear disclosure. The bill empowers the Texas Attorney General to investigate potential violations, file civil suits, and seek injunctive relief, with potential fines ranging from $300,000 for individuals to up to $30 million for larger entities, depending on their asset size. Importantly, the bill does not create a private right of action, meaning only the state can bring enforcement actions. The new requirements will take effect on September 1, 2025, with some specific disclosure requirements delayed until March 1, 2026.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2056