H.B. No. 4134 introduces a new provision in the Texas Finance Code that allows holders of retail installment contracts to charge a convenience fee for processing electronic payments related to motor vehicle transactions. This fee can only be collected if it is reasonably related to the processing costs and does not exceed $10 or five percent of the payment amount. Additionally, the bill mandates that the holder or their agent must provide buyers with alternative payment options that do not incur a fee, ensure that electronic payment is not established as the expected method of payment, and inform buyers about the fee and alternative payment methods before they agree to make an electronic payment.

The new section, 348.416, defines "electronic payment" to include various forms such as credit cards and electronic checks, and outlines specific requirements for transparency and buyer choice. The bill is set to take effect on September 1, 2025, following its passage in both the House and Senate with significant support.

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