Texas 2021 - 87th Regular

Texas House Bill HB876

Caption

Relating to fees charged by certain persons for the method used for payments made under an agreement.

Impact

The implications of HB876 extend to the Texas Business and Commerce Code, as it establishes a new regulation around the legality of charging fees for paper checks. This law is intended to enhance consumer protection by eliminating any financial disadvantage that may arise from the choice of payment method. Moreover, it seeks to create a more equitable environment for individuals and businesses engaged in transactions that involve paper check payments.

Summary

House Bill 876 addresses the fees associated with payment methods used under agreements in Texas. Specifically, the legislation prohibits individuals or entities from charging additional fees to payees who opt to receive payments via paper checks, as opposed to electronic methods such as automated clearinghouse transactions. By implementing this change, HB876 aims to ensure that payees are not penalized for choosing traditional payment methods, providing them with greater financial security and flexibility in their payment options.

Sentiment

The sentiment surrounding HB876 is generally positive, as it garners support from lawmakers advocating for consumer rights and fairness in financial transactions. Proponents argue that the bill aligns with the interests of both individual payees and small businesses who may rely on check payments. However, discussions led to some concerns from entities that might be affected by the prohibition on additional fees, leading to a nuanced debate about the economic ramifications for different stakeholders in the payment ecosystem.

Contention

Despite the overall support for HB876, notable points of contention arose regarding the potential impact on businesses that traditionally charge fees for electronic transactions. Opponents of the bill expressed concerns about how this prohibition might change the dynamics of payment processing, positing that it could lead to higher costs or reduced availability of check payment options in the market. This disagreement reflects broader tensions between consumer protection measures and the financial practices of businesses within the state.

Companion Bills

No companion bills found.

Similar Bills

No similar bills found.