By: Hancock  S.B. No. 2056          (In the Senate - Filed March 7, 2025; March 17, 2025, read   first time and referred to Committee on Business & Commerce;   April 14, 2025, reported adversely, with favorable Committee   Substitute by the following vote:  Yeas 10, Nays 0; April 14, 2025,   sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 2056 By:  Nichols     A BILL TO BE ENTITLED   AN ACT     relating to anticompetitive and other unlawful practices and to   certain required disclosures 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.  CERTAIN PROHIBITIONS AND REQUIREMENTS 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 to whom or for whose   benefit a 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, that issues credit cards to cardholders.                (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)  a merchant 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.          Sec. 604B.002.  APPLICABILITY. This chapter 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.   SUBCHAPTER B.  CREDIT CARD ISSUERS          Sec. 604B.051.  PROHIBITED PRACTICES BY CREDIT CARD ISSUER.   A credit card issuer may not directly or indirectly through an   agent, processor, contract, requirement, condition, penalty,   inducement, technological specification, or otherwise:                (1)  fix or conspire to fix a swipe fee with, or on   behalf of, another credit card issuer or any 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 or has been   used in the previous calendar year by another credit card issuer   subject to this chapter to determine the amount of an interchange   fee with respect to a credit card transaction that the other credit   card 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.052.  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)  whether one or more swipe fees have been charged or   assessed on a credit card transaction listed on the statement;                (2)  the amount of each swipe fee charged or assessed on   each credit card transaction listed on the statement; and                (3)  the total of all fees described by Subdivision (2)   for the period covered by the applicable monthly billing cycle.   SUBCHAPTER C.  PAYMENT CARD NETWORKS          Sec. 604B.101.  PROHIBITED PRACTICES BY PAYMENT CARD   NETWORK. A payment card network may not directly or indirectly   through an agent, processor, contract, requirement, condition,   penalty, inducement, technological specification, or otherwise:                (1)  fix or conspire to fix a swipe fee with, or on   behalf of, another payment card network or a credit card issuer;                (2)  fix, establish, or recommend a fee schedule that   the payment card network knows, or reasonably should know, has been   used by one or more credit card issuers, other than the payment card   network if the network is also a credit card issuer, to determine   the amount of any interchange fee that the other credit card issuer   or issuers, as applicable, received or charged in the current or   previous calendar year;                (3)  charge a cardholder or a merchant a fee for 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;                 (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;                 (5)  require a merchant to accept as payment any credit   card issued by a credit card issuer, including requiring a merchant   to accept one credit card as a condition for accepting as payment   other credit cards that are enabled for processing over the payment   card network; or                (6)  charge a merchant a swipe fee or other fee on a   credit card transaction without disclosing, in a clear and   conspicuous manner not later than the 45th day after the date of the   credit card transaction, 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 disclosure, 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 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 who the   attorney general believes has violated this chapter.  An individual   or other person adjudged to have violated this chapter 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) for a violation   arising out of the same conduct are mutually exclusive.          Sec. 604B.157.  NO PRIVATE CAUSE OF ACTION. This chapter   does not create a private cause of action.          SECTION 2.  If any provision of this Act or its application   to any person or circumstance is held invalid, the invalidity does   not affect other provisions or applications of this Act that can be   given effect without the invalid provision or application, and the   invalidity applies only to that person or circumstance.  To this end   the provisions of this Act are declared severable.          SECTION 3.  Notwithstanding Section 604B.052, 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.     * * * * *