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 vehicles. 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 holder or their agent must provide the buyer with options to pay without incurring a fee and must not establish electronic payment as the default method. The buyer must also be informed of the fee amount and alternative payment methods before agreeing to an electronic payment.

The bill emphasizes transparency and consumer choice by requiring that buyers be informed about the fee and their payment options. It aims to ensure that electronic payments are not the only method available and that any fees charged are fair and justifiable. The act is set to take effect on September 1, 2025.

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