TX HB4134

Authorizes holders of motor vehicle retail installment contracts to charge a convenience fee for processing electronic payments (credit card, debit card, electronic funds transfer, electronic check)

Caps the convenience fee at the lesser of $10 or 5% of the payment amount, and requires the fee to be reasonably related to actual processing expenses

Requires that buyers be offered an alternative fee-free payment method (check, cash, or money order) and prohibits establishing electronic payment as the expected form of payment

Mandates disclosure to buyers before they agree to electronic payment, including the fee amount, availability of fee-free alternatives, and their right not to use electronic payment

Takes effect September 1, 2025; passed the House 141-4 on April 29, 2025, and the Senate 30-1 on May 27, 2025