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A BILL TO BE ENTITLED
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AN ACT
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relating to unlawful practices relating to credit card |
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transactions; providing a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 12, Business & Commerce Code, is amended by |
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adding Chapter 604B to read as follows: |
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CHAPTER 604B. UNLAWFUL PRACTICES RELATING TO CREDIT CARD |
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TRANSACTIONS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 604B.001. DEFINITIONS. In this chapter: |
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(1) "Assessment fee" means a fee paid to the payment |
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card network for allowing a merchant to use a payment card or other |
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payment code or device in a credit card transaction. |
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(2) "Cardholder" means the person named on the face of |
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a credit card to whom or for whose benefit the credit card is |
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issued. |
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(3) "Credit card" means a card or device issued under |
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an agreement by which the credit card issuer gives to a cardholder |
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the right to obtain credit from the issuer or another person. |
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(4) "Credit card issuer" means a lender, including a |
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financial institution, or a merchant that receives applications and |
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issues credit cards to individuals. |
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(5) "Credit card transaction" means a transaction in |
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which a person uses a credit card or other payment code or device |
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issued or approved through a payment card network to use a line of |
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credit, whether authorization is based on a signature, personal |
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identification number, or other means. |
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(6) "Fee schedule" means any schedule, list, table, |
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chart, or similar document or agreement, whether or not publicly |
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disclosed, that sets forth or fixes the amount, or the formula for |
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determining the amount, of one or more fee rates. |
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(7) "Interchange fee" means a fee charged to a |
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merchant for the purpose of compensating the credit card issuer for |
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the issuer's involvement in a credit card transaction. |
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(8) "Merchant" means a person who accepts payment for |
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goods or services through a credit card transaction. |
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(9) "Payment card network" means an entity that |
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directly, or through a licensed member, processor, or agent, |
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provides the proprietary services, infrastructure, and software |
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that: |
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(A) route information and data to conduct a |
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credit card transaction authorization, clearance, and settlement; |
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and |
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(B) the entity uses to accept as a form of payment |
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a brand of credit card or other device that may be used to carry out |
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credit card transactions. |
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(10) "Swipe fee" means the interchange fee and, if |
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applicable, the assessment fee. |
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SUBCHAPTER B. CREDIT CARD ISSUERS |
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Sec. 604B.051. APPLICABILITY. This subchapter applies only |
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to a credit card issuer that, together with any affiliates, had |
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consolidated worldwide banking and nonbanking assets, including |
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affiliate assets, other than trust assets under management, of more |
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than $85 billion at any point during the previous calendar year. |
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Sec. 604B.052. PROHIBITED PRACTICES BY CREDIT CARD ISSUER. |
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A credit card issuer may not: |
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(1) fix or conspire to fix a swipe fee with, or on |
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behalf of, another credit card issuer or payment card network; |
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(2) receive or charge an interchange fee with respect |
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to a credit card transaction in an amount that is included on or |
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determined by a fee schedule that: |
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(A) has been fixed, established, or recommended |
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by a payment card network; or |
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(B) the credit card issuer knows, or reasonably |
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should know, is being used in the same calendar year by another |
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credit card issuer subject to this subchapter to determine the |
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amount of an interchange fee with respect to a credit card |
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transaction that issuer receives or charges; |
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(3) charge a cardholder or a merchant a fee due to a |
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disputed credit card transaction unless: |
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(A) a finding of fact concludes that the |
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cardholder or merchant is responsible for the disputed transaction; |
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and |
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(B) the cardholder or merchant is provided |
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written notification of the finding of fact; or |
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(4) prohibit or penalize a merchant that offers a |
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cardholder a discount for using cash, a debit card, or a gift card |
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instead of a credit card for payment. |
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Sec. 604B.053. REQUIRED DISCLOSURE OF SWIPE FEES TO |
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CARDHOLDERS. A credit card issuer shall disclose in a clear and |
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conspicuous manner on a monthly statement sent to a cardholder that |
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has been issued a credit card by the credit card issuer: |
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(1) if one or more swipe fees have been charged to the |
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cardholder on a credit card transaction; and |
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(2) the amount of the swipe fee charged to the |
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cardholder on a credit card transaction. |
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SUBCHAPTER C. PAYMENT CARD NETWORKS |
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Sec. 604B.101. PROHIBITED PRACTICES BY PAYMENT CARD |
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NETWORK. A payment card network may not: |
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(1) fix or conspire to fix a swipe fee with, or on |
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behalf of, another credit card issuer or payment card network; |
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(2) require a merchant to accept as payment any credit |
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card issued by the credit card issuer; |
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(3) charge a cardholder or a merchant a fee due to a |
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disputed credit card transaction unless: |
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(A) a finding of fact concludes that the |
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cardholder or merchant is responsible for the disputed credit card |
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transaction; and |
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(B) the cardholder or merchant is provided |
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written notification of the finding of fact; or |
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(4) prohibit or penalize a merchant that offers a |
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cardholder a discount for using cash, a debit card, or a gift card |
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instead of a credit card for payment. |
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Sec. 604B.102. DISCLOSURE BY PAYMENT CARD NETWORKS OF FEES |
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CHARGED TO MERCHANTS. A payment card network shall, not later than |
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the 45th day after the date of the credit card transaction, disclose |
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in a clear and conspicuous manner to the merchant or another person |
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who assists the merchant in processing credit card transactions and |
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who has been designated by the merchant to receive the disclosures, |
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the rate and total amount of each swipe fee or other fee charged on |
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each credit card transaction. |
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SUBCHAPTER D. ENFORCEMENT |
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Sec. 604B.151. INVESTIGATION BY ATTORNEY GENERAL. If the |
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attorney general is made aware or independently learns of a |
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violation of this chapter, the attorney general may investigate the |
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alleged violation to the same extent and in the same manner as an |
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alleged antitrust violation under Chapter 15. |
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Sec. 604B.152. CIVIL SUITS FOR ANTICOMPETITIVE VIOLATIONS. |
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The attorney general may file suit in district court in Travis |
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County or in any county in the State of Texas in which any of the |
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named defendants resides, does business, or maintains its principal |
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office on behalf of the State of Texas to collect a civil fine from |
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any person whom the attorney general believes has violated any of |
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the prohibitions in Section 604B.052(1) or (2) or Section |
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604B.101(1) or (2). An individual or other person adjudged to have |
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violated any of these prohibitions shall pay a fine to the state in |
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an amount not to exceed: |
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(1) if an individual, $300,000; or |
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(2) if any other person: |
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(A) $3 million, if the lesser of the person's |
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assets or market capitalization is less than $100 million; |
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(B) $20 million, if the lesser of the person's |
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assets or market capitalization is at least $100 million but less |
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than $500 million; or |
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(C) $30 million, if the lesser of the person's |
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assets or market capitalization is $500 million or more. |
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Sec. 604B.153. INJUNCTIVE RELIEF. The attorney general may |
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file suit against any person in district court in Travis County or |
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in any county in the State of Texas in which any of the named |
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defendants resides, does business, or maintains its principal |
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office on behalf of the State of Texas to enjoin temporarily or |
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permanently any activity or contemplated activity that violates or |
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threatens to violate any of the prohibitions in this chapter. In |
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any such suit, the court shall apply the same principles as those |
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generally applied by courts of equity in suits for injunctive |
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relief against threatened conduct that would cause injury to |
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business or property. In any such suit in which the state |
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substantially prevails on the merits, the state shall be entitled |
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to recover the cost of suit. |
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Sec. 604B.154. TRANSFER OF SUIT. No suit filed under this |
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subchapter may be transferred to another county except on order of |
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the court. |
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Sec. 604B.155. AUTHORITY OF ATTORNEY GENERAL NOT LIMITED. |
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Nothing in this subchapter shall be construed to limit the |
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constitutional or common law authority of the attorney general to |
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bring actions under state and federal law. |
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Sec. 604B.156. MUTUALLY EXCLUSIVE REMEDIES. Remedies |
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available under Sections 604B.152 and 15.20(a) are mutually |
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exclusive. |
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Sec. 604B.157. NO PRIVATE CAUSE OF ACTION. This chapter |
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does not create a private cause of action. |
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SECTION 2. To the extent of a conflict between Section |
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604B.052(3) or (4) or Section 604B.101(3) or (4), Business & |
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Commerce Code, as added by this Act, and a provision of a contract |
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entered into before the effective date of this Act, the contract |
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provision prevails. |
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SECTION 3. Notwithstanding Section 604B.053, Business & |
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Commerce Code, as added by this Act, a credit card issuer is not |
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required to comply with that section until March 1, 2026. |
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SECTION 4. This Act takes effect September 1, 2025. |