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Bill

HB 4124

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

89th Legislature (2025) Introduced by Angie Button and 1 co-sponsor

Texas bill restricts merchant surcharges on electronic payments and creates civil penalties for violations, potentially lowering checkout costs for card-paying 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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WeVote Research Nonpartisan
Bill Summary · HB 4124

Legislative bill overview

HB 4124 regulates how businesses can charge customers for using electronic payment methods (credit/debit cards, digital wallets). The bill appears to restrict or prohibit certain "swipe fee" surcharges that merchants currently pass to consumers, and establishes civil penalties for violations of these restrictions.

Why is this important

Swipe fees—the processing charges merchants pay to card networks—are routinely passed to consumers as surcharges, increasing transaction costs. This bill could affect pricing transparency and consumer costs at checkout, while also impacting merchant operations and payment processor economics. The outcome depends heavily on which fee practices the bill actually prohibits.

Potential points of contention

  • Consumer vs. merchant impact: Restricting merchant surcharges could lower consumer costs but may incentivize merchants to raise base prices instead, shifting costs to all customers including non-card users
  • Payment network interests: Credit card companies and processors may lobby against restrictions that reduce their revenue or visibility of processing costs
  • Enforcement mechanisms: The "civil penalty" language lacks detail—unclear who enforces violations, penalty amounts, and whether this creates new litigation exposure for businesses

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

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