TEXAS AND CREDIT CARD CONVENIENCE FEES OR …



TEXAS AND CREDIT CARD CONVENIENCE FEES OR SURCHARGES

In Texas, the Finance Code prohibits sellers from charging such a fee to credit card customers, however, sellers may offer a discount for paying in cash.  Additionally, government entities are exempt from this restriction, therefore government agencies can (and often do) charge extra fees for using credit cards.  Note that many of the universities charge a convenience fee; i.e., Texas Parks & Wildlife charges a fee; TCU charges 2.75% with a $3.00 minimum.  Landlords cannot charge a fee, and there have been cases to prevent this action.

Tex. Finance Code § 339.001  (2011)

§ 339.001.  Imposition of Surcharge for Use of Credit Card

   (a) In a sale of goods or services, a seller may not impose a surcharge on a buyer who uses a credit card for an extension of credit instead of cash, a check, or a similar means of payment.

(b) This section does not apply to a state agency, county, local governmental entity, or other governmental entity that accepts a credit card for the payment of fees, taxes, or other charges.

(c) The Finance Commission of Texas shall have exclusive jurisdiction to enforce and adopt rules relating to this section. Rules adopted pursuant to this section shall be consistent with federal laws and regulations governing credit card transactions described by this section. This section does not create a cause of action against an individual for violation of this section.

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