S.B. No. 1736 introduces a new provision to the Finance Code regarding the collection of convenience fees for processing electronic payments related to motor vehicle retail installment contracts. The bill allows holders of these contracts or their agents to charge a fee for processing electronic payments, provided that the fee is reasonable and does not exceed $10 or five percent of the payment amount. Additionally, the bill stipulates that buyers must be informed of the fee and their options for making payments without incurring a fee, such as through cash or check, before agreeing to an electronic payment.

The new section, 348.416, outlines specific conditions under which the convenience fee can be charged, including the requirement that electronic payment cannot be established as the expected form of payment. This legislation aims to ensure transparency and fairness in the processing of electronic payments for motor vehicle transactions. The provisions of this bill will take effect on September 1, 2025.

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