Surcharge & Dual Pricing Laws · Texas · Last verified 2026-08-27
Texas still has a surcharge ban on the books, but federal courts ruled it unenforceable — in practice, surcharging is available under card-brand rules (3% cap, credit only). Dual pricing — posting a card price and a lower cash price — is legal in Texas.
| Credit card surcharging | Banned on paper — ruled UNENFORCEABLE |
|---|---|
| Surcharge cap | With the ban enjoined, card-brand rules govern in practice. Card-brand rules govern (lesser of 3% Visa/Discover cap or merchant's cost of acceptance; Mastercard 4% ceiling rarely operative). Debit and prepaid cards can never be surcharged. |
| Dual pricing (cash price / card price) | LEGAL |
| Governing law | Tex. Bus. & Com. Code §604A.0021 (still codified) |
| Enforcement | Largely unenforceable under the Rowell injunction, but the AG has opined the statute may retain narrow as-applied force — Texas merchants should structure carefully. |
Card-brand disclosure rules only: post notice at store entry and point of sale; surcharge shown as a separate line item on the receipt.
Rowell v. Paxton, 336 F. Supp. 3d 724 (W.D. Tex. 2018) — permanent injunction; Tex. AG Op. KP-0257 (2019) suggests possible as-applied enforceability against non-litigants.
Cash discounting is expressly NOT a surcharge under §604A.001(5) — dual pricing is the clean Texas structure.
Even though the ban is unenforceable, dual pricing is the cleaner Texas structure — it is expressly legal, avoids any residual statutory risk, and covers debit as well as credit. Surcharging remains an option under card-brand rules for merchants who prefer it.
Effectively yes. The statutory ban was ruled unenforceable by federal courts, so card-brand rules (3% cap, credit only) govern in practice — though dual pricing is the cleaner structure.
Cash discounting is expressly NOT a surcharge under §604A.001(5) — dual pricing is the clean Texas structure. Dual pricing applies to both debit and credit cards.
No. Debit and prepaid cards can never be surcharged anywhere in the U.S. — the Durbin Amendment and card-network rules prohibit it regardless of state law. Dual pricing, by contrast, lawfully covers both debit and credit.
Card-brand disclosure rules only: post notice at store entry and point of sale; surcharge shown as a separate line item on the receipt.
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This page is an educational reference, not legal advice. Surcharge and pricing law changes frequently — this page was last verified on 2026-08-27, and we confirm current rules for your state during setup. Sources: Tex. Bus. & Com. Code §604A.0021; Rowell v. Paxton, 336 F. Supp. 3d 724 (W.D. Tex. 2018); Tex. AG Op. KP-0257 (2019).