2025 Texas Statutes
Finance Code
Title 4 - Regulation of Interest, Loans, and Financed Transactions
Subtitle B - Loans and Financed Transactions
Chapter 348 - Motor Vehicle Installment Sales
Subchapter E. Holder's Rights, Duties, and Limitations
Section 348.416. Convenience Fee for Processing Electronic Payments Authorized
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 electronic payment;
(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 expected form of payment; and
(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 under this section;
(ii) that the buyer may make a payment by an alternative method that does not incur a fee, including by check, cash, or money order; and
(iii) that the holder or holder's agent may not establish electronic payment as the expected form of payment.
Added by Acts 2025, 89th Leg., R.S., Ch. 1044 (H.B. 4134), Sec. 1, eff. September 1, 2025.
