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 the option to pay without incurring a fee through alternative methods such as cash or check, and they cannot establish electronic payment as the default method.

The bill also requires that buyers are informed of the fee amount and their payment options before agreeing to make an electronic payment. This legislation aims to ensure transparency and fairness in the processing of electronic payments for motor vehicles, taking effect on September 1, 2025.

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