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Financial Services Law Insights and Observations

Texas Bans Credit Card Surcharges

State Issues State Legislation Credit Cards

State Issues

On May 27, Texas passed legislation that bans surcharges on credit card transactions. Existing Texas law prohibits businesses from increasing the price charged for goods or services for buyers who pay with a debit card or stored value card. With the passage of S.B. 560 , the prohibition on such surcharges will now extend to credit card transactions as well. The law takes effect September 1, 2017. Any person who violates the law can incur a civil penalty of up to $500 for each incident.

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