House Bill No. 4124 introduces Chapter 610 to the Business & Commerce Code, focusing on the regulation of swipe fees associated with electronic payment transactions. The bill defines key terms such as "assessment fee," "electronic payment transaction," "gratuity," "interchange fee," and "swipe fee." It mandates that state or local taxes and gratuities, when separately listed on payment 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 stipulates that if a merchant cannot capture and transmit tax or gratuity amounts at the time of sale, the payment card network must accept proof of these amounts and provide the rebate within specified timeframes.

The bill also 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. Any collected penalties will be deposited into the state treasury for the general revenue fund. Furthermore, individuals found in violation of this chapter are required to refund any improperly charged swipe fees to merchants. The act is set to take effect on September 1, 2025, and includes a provision ensuring that if any part of the act is deemed invalid, the remaining provisions will still be enforceable.

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