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Bill

SB 2026

Relating to the charging of swipe fees on certain electronic payment transaction; authorizing a civil penalty.

89th Legislature (2025) Introduced by Donna Campbell

Texas SB 2026 restricts swipe fees on electronic payments and authorizes civil penalties for violations, potentially lowering costs for small businesses and consumers.

Left pending in committee
#attorneygeneral(v2811) #business&commerce--general(i0050) #credit&debitcards(s0388) #civilremedies&liabilities(i0065) #electronicfundstransfer(s2337) #financial--general(i0365) #taxation--general(i0815) #taxation--sales(i0800)
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Bill Summary · SB 2026

Legislative bill overview

SB 2026 addresses the practice of charging swipe fees (also called interchange fees or processing fees) on electronic payment transactions, likely by restricting when and how these fees can be applied. The bill authorizes civil penalties for violations of its provisions, creating enforcement mechanisms for noncompliance.

Why is this important

Swipe fees significantly impact small businesses, nonprofits, and consumers by increasing transaction costs. Retailers currently pay 2-3% of transaction value in swipe fees, which are often passed to consumers through higher prices. Regulating these fees could reduce operational costs for small merchants and potentially lower consumer prices, though it may also affect payment processing accessibility.

Potential points of contention

  • Payment processor opposition: Credit card networks and payment processors may argue that swipe fees fund fraud prevention, security infrastructure, and network maintenance, and that regulation could reduce service quality or innovation
  • Consumer impact uncertainty: While supporters claim lower merchant costs lead to lower prices, critics question whether savings actually reach consumers or remain as merchant profit
  • Implementation complexity: Defining which transactions qualify for fee restrictions and establishing clear civil penalty standards without unintended consequences requires precise legislative language

Compiled from official sources — confirm details with the bill’s official record.

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