89R5341 SRA-D     By: Hancock S.B. No. 2056       A BILL TO BE ENTITLED   AN ACT   relating to unlawful practices relating to credit card   transactions; providing a civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 12, Business & Commerce Code, is amended by   adding Chapter 604B to read as follows:   CHAPTER 604B.  UNLAWFUL PRACTICES RELATING TO CREDIT CARD   TRANSACTIONS   SUBCHAPTER A.  GENERAL PROVISIONS          Sec. 604B.001.  DEFINITIONS. In this chapter:                (1)  "Assessment fee" means a fee paid to the payment   card network for allowing a merchant to use a payment card or other   payment code or device in a credit card transaction.                (2)  "Cardholder" means the person named on the face of   a credit card to whom or for whose benefit the credit card is   issued.                (3)  "Credit card" means a card or device issued under   an agreement by which the credit card issuer gives to a cardholder   the right to obtain credit from the issuer or another person.                (4)  "Credit card issuer" means a lender, including a   financial institution, or a merchant that receives applications and   issues credit cards to individuals.                (5)  "Credit card transaction" means a transaction in   which a person uses a credit card or other payment code or device   issued or approved through a payment card network to use a line of   credit, whether authorization is based on a signature, personal   identification number, or other means.                (6)  "Fee schedule" means any schedule, list, table,   chart, or similar document or agreement, whether or not publicly   disclosed, that sets forth or fixes the amount, or the formula for   determining the amount, of one or more fee rates.                (7)  "Interchange fee" means a fee charged to a   merchant for the purpose of compensating the credit card issuer for   the issuer's involvement in a credit card transaction.                (8)  "Merchant" means a person who accepts payment for   goods or services through a credit card transaction.                (9)  "Payment card network" means an entity that   directly, or through a licensed member, processor, or agent,   provides the proprietary services, infrastructure, and software   that:                      (A)  route information and data to conduct a   credit card transaction authorization, clearance, and settlement;   and                      (B)  the entity uses to accept as a form of payment   a brand of credit card or other device that may be used to carry out   credit card transactions.                (10)  "Swipe fee" means the interchange fee and, if   applicable, the assessment fee.   SUBCHAPTER B.  CREDIT CARD ISSUERS          Sec. 604B.051.  APPLICABILITY. This subchapter applies only   to a credit card issuer that, together with any affiliates, had   consolidated worldwide banking and nonbanking assets, including   affiliate assets, other than trust assets under management, of more   than $85 billion at any point during the previous calendar year.          Sec. 604B.052.  PROHIBITED PRACTICES BY CREDIT CARD ISSUER.   A credit card issuer may not:                (1)  fix or conspire to fix a swipe fee with, or on   behalf of, another credit card issuer or payment card network;                (2)  receive or charge an interchange fee with respect   to a credit card transaction in an amount that is included on or   determined by a fee schedule that:                      (A)  has been fixed, established, or recommended   by a payment card network; or                      (B)  the credit card issuer knows, or reasonably   should know, is being used in the same calendar year by another   credit card issuer subject to this subchapter to determine the   amount of an interchange fee with respect to a credit card   transaction that issuer receives or charges;                (3)  charge a cardholder or a merchant a fee due to a   disputed credit card transaction unless:                      (A)  a finding of fact concludes that the   cardholder or merchant is responsible for the disputed transaction;   and                      (B)  the cardholder or merchant is provided   written notification of the finding of fact; or                (4)  prohibit or penalize a merchant that offers a   cardholder a discount for using cash, a debit card, or a gift card   instead of a credit card for payment.          Sec. 604B.053.  REQUIRED DISCLOSURE OF SWIPE FEES TO   CARDHOLDERS. A credit card issuer shall disclose in a clear and   conspicuous manner on a monthly statement sent to a cardholder that   has been issued a credit card by the credit card issuer:                (1)  if one or more swipe fees have been charged to the   cardholder on a credit card transaction; and                (2)  the amount of the swipe fee charged to the   cardholder on a credit card transaction.   SUBCHAPTER C.  PAYMENT CARD NETWORKS          Sec. 604B.101.  PROHIBITED PRACTICES BY PAYMENT CARD   NETWORK. A payment card network may not:                (1)  fix or conspire to fix a swipe fee with, or on   behalf of, another credit card issuer or payment card network;                (2)  require a merchant to accept as payment any credit   card issued by the credit card issuer;                (3)  charge a cardholder or a merchant a fee due to a   disputed credit card transaction unless:                      (A)  a finding of fact concludes that the   cardholder or merchant is responsible for the disputed credit card   transaction; and                      (B)  the cardholder or merchant is provided   written notification of the finding of fact; or                (4)  prohibit or penalize a merchant that offers a   cardholder a discount for using cash, a debit card, or a gift card   instead of a credit card for payment.          Sec. 604B.102.  DISCLOSURE BY PAYMENT CARD NETWORKS OF FEES   CHARGED TO MERCHANTS. A payment card network shall, not later than   the 45th day after the date of the credit card transaction, disclose   in a clear and conspicuous manner to the merchant or another person   who assists the merchant in processing credit card transactions and   who has been designated by the merchant to receive the disclosures,   the rate and total amount of each swipe fee or other fee charged on   each credit card transaction.   SUBCHAPTER D.  ENFORCEMENT          Sec. 604B.151.  INVESTIGATION BY ATTORNEY GENERAL. If the   attorney general is made aware or independently learns of a   violation of this chapter, the attorney general may investigate the   alleged violation to the same extent and in the same manner as an   alleged antitrust violation under Chapter 15.          Sec. 604B.152.  CIVIL SUITS FOR ANTICOMPETITIVE VIOLATIONS.   The attorney general may file suit in district court in Travis   County or in any county in the State of Texas in which any of the   named defendants resides, does business, or maintains its principal   office on behalf of the State of Texas to collect a civil fine from   any person whom the attorney general believes has violated any of   the prohibitions in Section 604B.052(1) or (2) or Section   604B.101(1) or (2).  An individual or other person adjudged to have   violated any of these prohibitions shall pay a fine to the state in   an amount not to exceed:                (1)  if an individual, $300,000; or                (2)  if any other person:                      (A)  $3 million, if the lesser of the person's   assets or market capitalization is less than $100 million;                      (B)  $20 million, if the lesser of the person's   assets or market capitalization is at least $100 million but less   than $500 million; or                      (C)  $30 million, if the lesser of the person's   assets or market capitalization is $500 million or more.          Sec. 604B.153.  INJUNCTIVE RELIEF. The attorney general may   file suit against any person in district court in Travis County or   in any county in the State of Texas in which any of the named   defendants resides, does business, or maintains its principal   office on behalf of the State of Texas to enjoin temporarily or   permanently any activity or contemplated activity that violates or   threatens to violate any of the prohibitions in this chapter.  In   any such suit, the court shall apply the same principles as those   generally applied by courts of equity in suits for injunctive   relief against threatened conduct that would cause injury to   business or property.  In any such suit in which the state   substantially prevails on the merits, the state shall be entitled   to recover the cost of suit.          Sec. 604B.154.  TRANSFER OF SUIT. No suit filed under this   subchapter may be transferred to another county except on order of   the court.          Sec. 604B.155.  AUTHORITY OF ATTORNEY GENERAL NOT LIMITED.   Nothing in this subchapter shall be construed to limit the   constitutional or common law authority of the attorney general to   bring actions under state and federal law.          Sec. 604B.156.  MUTUALLY EXCLUSIVE REMEDIES. Remedies   available under Sections 604B.152 and 15.20(a) are mutually   exclusive.          Sec. 604B.157.  NO PRIVATE CAUSE OF ACTION. This chapter   does not create a private cause of action.          SECTION 2.  To the extent of a conflict between Section   604B.052(3) or (4) or Section 604B.101(3) or (4), Business &   Commerce Code, as added by this Act, and a provision of a contract   entered into before the effective date of this Act, the contract   provision prevails.          SECTION 3.  Notwithstanding Section 604B.053, Business &   Commerce Code, as added by this Act, a credit card issuer is not   required to comply with that section until March 1, 2026.          SECTION 4.  This Act takes effect September 1, 2025.