Credit card processing in Texas
Texas surcharge law is one of the murkiest in the country: a statute still in the code, a federal court ruling against it, and an Attorney General opinion saying it still bites in some cases. Add a huge, fast-growing economy and the stakes for getting card fees right are high.
The Texas Comptroller lists the Texas state sales tax rate as 6.25%; check whether local taxes also apply at each location.
From Austin and Dallas bars to Texas food trucks: Texas's business mix
Dallas-Fort Worth, with Arlington, Plano, Irving, Garland and Frisco, holds corporate headquarters, logistics hubs and endless suburban retail and restaurants. Houston has energy, the medical centre and the port, San Antonio has military bases and tourism, and Austin has technology firms and a live-music scene.
El Paso and Laredo sit on the border with heavy cross-border trade and shoppers from Mexico, Corpus Christi and the coast combine refining and beaches, and Lubbock serves West Texas agriculture. Food trucks, HVAC contractors and auto shops are everywhere.
The legal side of card fees in Texas
Texas Business and Commerce Code 604A.0021 bars credit card surcharges and 604A.002 bars debit card surcharges. In Rowell v. Paxton (2018), a federal court held the credit card provision unconstitutional and enjoined its enforcement; the ruling did not address debit. Attorney General Opinion KP-0257 says the law remains enforceable in some contexts. Cash discounts are not surcharges under the statute's definition.
| Status | Statute on the books, disputed in court |
|---|---|
| Key condition | Tex. Bus. & Com. Code 604A.0021 bars credit card surcharges and 604A.002 bars debit card surcharges. In Rowell v. Paxton (W.D. Tex. 2018) a federal court held the credit card provision unconstitutional and enjoined its enforcement; the ruling did not address debit cards. Attorney General Opinion KP-0257 (2019) says the law remains enforceable in some contexts. Check current rules with counsel. |
| Source | Tex. Bus. & Com. Code 604A.0021 and 604A.002; Texas State Law Library, Credit Card Surcharge FAQ; Tex. Att'y Gen. Op. KP-0257 |
Surcharge laws in every state · general guidance only
Which pricing suits Texas food trucks?
Because of that uncertainty, many Texas merchants choose a genuine cash discount, which the statute's definition excludes from surcharges, over a card fee. HVAC and home-service companies billing big summer repairs should look at ACH and Level 2 data too. Border merchants serving Mexican cardholders see international fees that interchange-plus makes visible.
POS for HVAC and home-service contractors, border retailers in El Paso and Laredo and more
- Texas food trucks
- Mobile terminals with offline mode, fast contactless and small-ticket pricing.
- HVAC and home-service contractors
- Field invoicing, card-on-file for maintenance plans and pay-by-link.
- Border retailers in El Paso and Laredo
- Bilingual receipts and smooth acceptance of Mexican-issued cards.
- Austin and Dallas bars
- Tab management, tip adjustment and event-night capacity, set up around how Austin and Dallas bars in Texas sell.
Send one statement. Every fee named, back, usually within 4 hours.
It is free, there is nothing to sign and nothing to cancel. We read your current merchant statement line by line, name every fee on it — including the ones buried in the fee schedule — work out your true effective rate, and send the written analysis back, usually within 4 hours. Do not want to wait? Call 1-888-705-7896 and we will read your statement with you on the call in about 5 minutes.
Across Texas
Houston · San Antonio · Dallas · Austin · Fort Worth · El Paso · Arlington · Corpus Christi · Plano · Laredo · Lubbock · Garland · Irving · Amarillo · Grand Prairie · Brownsville · McKinney · Frisco · Pasadena · Killeen · McAllen · Mesquite · Midland · Denton · Waco · Carrollton · Round Rock · Abilene · Pearland · Richardson · Odessa · Sugar Land · College Station · Beaumont · Lewisville · Tyler · League City · Allen · San Angelo · Edinburg · Bryan · Wichita Falls · Longview · New Braunfels · Conroe · Mission · Baytown · Cedar Park · Georgetown · Galveston
Commercial corridors
Houston
Westheimer Road · Washington Avenue · Montrose Boulevard · Main Street · Richmond Avenue · Bellaire Boulevard · Kirby Drive · 19th Street (Heights) · Post Oak Boulevard
Dallas
Greenville Avenue · Deep Ellum (Elm Street) · Bishop Avenue · Knox Street · McKinney Avenue · Preston Road · Henderson Avenue
Austin
South Congress Avenue · 6th Street · Rainey Street · South Lamar Boulevard · Burnet Road · Guadalupe Street · East Cesar Chavez Street
San Antonio
River Walk · Broadway Street · Commerce Street · Blanco Road · Fredericksburg Road
Fort Worth
Magnolia Avenue · Main Street · Camp Bowie Boulevard · West 7th Street · Exchange Avenue
El Paso
Mesa Street · Stanton Street · Montana Avenue · Zaragoza Road
Texas: quick answers
For Texas food trucks: Texas Business and Commerce Code 604A.0021 bars credit card surcharges and 604A.002 bars debit card surcharges. For Texas food trucks: In Rowell v. For Texas food trucks: Paxton (2018), a federal court held the credit card provision unconstitutional and enjoined its enforcement; the ruling did not address debit. For Texas food trucks: Attorney General Opinion KP-0257 says the law remains enforceable in some contexts. For Texas food trucks: Cash discounts are not surcharges under the statute's definition.
For HVAC and home-service contractors: Texas Business and Commerce Code 604A.0021 bars credit card surcharges and 604A.002 bars debit card surcharges. For HVAC and home-service contractors: In Rowell v. For HVAC and home-service contractors: Paxton (2018), a federal court held the credit card provision unconstitutional and enjoined its enforcement; the ruling did not address debit. For HVAC and home-service contractors: Attorney General Opinion KP-0257 says the law remains enforceable in some contexts. For HVAC and home-service contractors: Cash discounts are not surcharges under the statute's definition.
The statute's definition says cash discounts are not surcharges. The discount must be real, not a fee added to card sales at the register.
For Austin and Dallas bars: All of it, in every community. San Antonio, Dallas, Austin, Fort Worth, El Paso, Arlington, Corpus Christi, Plano, Lubbock, Laredo, Irving, Garland, Frisco and Houston have their own pages here. For Austin and Dallas bars: We do not send sales reps door to door; the whole process runs by phone and email.