The proposed bill, S.B. No. 2056, introduces Chapter 604B to the Business & Commerce Code, focusing on unlawful practices related to credit card transactions and establishing civil penalties for violations. It defines key terms such as "credit card," "merchant," "interchange fee," and "swipe fee," and outlines prohibited practices for credit card issuers and payment card networks. Specifically, credit card issuers are prohibited from fixing swipe fees, charging fees for disputed transactions without proper findings, and penalizing merchants for offering discounts for alternative payment methods. Additionally, credit card issuers must disclose swipe fees on monthly statements, while payment card networks are required to disclose fees charged to merchants within a specified timeframe.

The bill also empowers the attorney general to investigate violations and file civil suits for anticompetitive practices, with specified penalties for individuals and entities found in violation. Notably, the bill clarifies that it does not create a private cause of action and establishes that certain contract provisions may prevail in case of conflict with the new regulations. Compliance with the disclosure requirements is deferred until March 1, 2026, and the bill is set to take effect on September 1, 2025.

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