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Texas Finance Code - FIN § 348.416. Convenience Fee for Processing Electronic Payments Authorized

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) In this section, "electronic payment" means a payment made by credit card, debit card, electronic funds transfer, electronic check, or other electronic method.

(b) A holder of a retail installment contract or the holder's agent may collect a fee for processing a retail buyer's electronic payment under the contract only if:

(1) the fee is reasonably related to the expense incurred by the holder or holder's agent in processing the electronic payment;

(2) the fee does not exceed the lesser of $10 or five percent of the amount of the payment;  and

(3) the holder or holder's agent:

(A) allows the buyer to make a payment by a method other than an electronic payment that does not incur a fee;

(B) does not establish electronic payment as the expected form of payment;  and

(C) informs the buyer of the following before the buyer agrees to make an electronic payment:

(i) the amount of the fee to be charged under this section;

(ii) that the buyer may make a payment by an alternative method that does not incur a fee, including by check, cash, or money order;  and

(iii) that the holder or holder's agent may not establish electronic payment as the expected form of payment.

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Cite this article: FindLaw.com - Texas Finance Code - FIN § 348.416. Convenience Fee for Processing Electronic Payments Authorized - last updated January 01, 2024 | https://codes.findlaw.com/tx/finance-code/fin-sect-348-416/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

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