TX HB4124

Prohibits payment card networks from charging swipe fees (interchange and assessment fees) on the state and local tax portions of electronic payment transactions, including sales tax, motor fuels tax, hotel occupancy tax, and mixed beverage tax

Requires that gratuities listed separately on payment invoices also be excluded from the total amount on which swipe fees are calculated

Payment card networks must either deduct taxes and gratuities from swipe fee calculations at settlement or rebate merchants the equivalent amount within 30 days of receiving sales data (and no later than 180 days after the transaction)

Makes it unlawful for payment card issuers or networks to increase swipe fee rates on non-tax portions of transactions to circumvent these requirements

Authorizes civil penalties up to $1,000 per violation, enforceable by the attorney general, and requires violators to refund merchants for any improperly charged swipe fees; effective September 1, 2025