Bill > HB4124

This bill creates a new chapter in the Texas Business & Commerce Code that regulates "swipe fees" charged during electronic payment transactions, specifically addressing how taxes and gratuities should be handled in fee calculations. The bill defines key terms like "electronic payment transaction," "swipe fee," and "payment card network," and requires payment card networks to exclude state or local taxes and separately listed gratuities 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 portion of fees attributable to taxes and gratuities. The bill prohibits payment card issuers or networks from manipulating fee computations to circumvent this requirement and establishes a civil penalty of up to $1,000 for each violation. The attorney general is authorized to pursue legal action to recover these penalties or obtain injunctions against violations, with potential cases to be heard in Travis County or the county where the violation occurred. Any collected penalties will be deposited into 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.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4124