S.B. No. 2026 introduces a new chapter, Chapter 610, to the Business & Commerce Code, which addresses the charging of swipe fees on electronic payment transactions. The bill defines key terms such as "assessment fee," "electronic payment transaction," "gratuity," "interchange fee," "payment card," "payment card issuer," "payment card network," and "swipe fee." It mandates that state or local taxes and gratuities, when listed separately on invoices, must be excluded from the total amount on which swipe fees are calculated. Payment card networks are required to either deduct these amounts from swipe fee calculations at the time of settlement or rebate the merchant accordingly.

Additionally, the bill establishes civil penalties for violations, allowing the attorney general to impose fines of up to $1,000 per violation and seek injunctions against non-compliance. It also stipulates that any collected civil penalties will be deposited into the state treasury's general revenue fund, and violators must refund any improperly charged swipe fees to merchants. The act is set to take effect on September 1, 2025, and includes a severability clause to ensure that if any provision is found invalid, the remaining provisions will still apply.

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