Credit Card Surcharge Laws in Texas (2026 Guide)

Is it legal to surcharge credit cards in Texas?

There's no clean yes-or-no answer, and any source that gives you one is oversimplifying. Texas Business & Commerce Code §604A.0021 prohibits merchants from imposing a credit card surcharge. In 2018, a federal court in Rowell v. Paxton ruled that section unconstitutional as applied to the merchants who brought the case, and permanently enjoined the state from enforcing it against them (JD Supra analysis). But in 2019, Texas Attorney General opinion KP-0257 stated that §604A.0021 "remains enforceable" in other contexts (Texas Attorney General, KP-0257).

Even the Texas State Law Library, a nonpartisan state government resource, declines to give a definitive answer: "It is unclear if Texas laws on credit card surcharges are enforceable due to recent federal litigation. As librarians, we cannot determine if a business can legally charge a fee for using a credit or debit card" (Texas State Law Library).

What this means for Texas merchants

Because the law's enforceability is unsettled, PayWavez recommends Texas merchants either confirm current enforcement posture with a Texas attorney before adding a credit card surcharge, or use a compliant dual pricing program instead. Dual pricing (posting a cash price and a separate, higher card price) is a different legal structure than a surcharge and isn't affected by §604A.0021, which makes it the more conservative option in Texas right now.

• Debit and prepaid cards can never be surcharged in Texas or anywhere else, regardless of how the credit card question resolves — this is settled federal law (the Durbin Amendment).
• Cash discounts are not considered surcharges under Texas law and remain a clearly legal way to offset processing costs.
• If a merchant does choose to surcharge credit cards in Texas, the standard Visa 3% / Mastercard 4% caps, cost-of-acceptance limit, 30-day notice, and disclosure rules covered in the full national rules guide still apply on top of the unresolved state-law question.

How PayWavez can help

Given the unresolved legal status, talk to PayWavez before enabling a surcharge program in Texas — a compliant dual pricing setup avoids the open legal question entirely while still offsetting your processing cost.

Related guides

• Credit Card Surcharge Laws & Compliance Rules — the full national rulebook.
• How to Add a Credit Card Surcharge Legally — the six-step setup checklist.
• Surcharging vs. Dual Pricing vs. Flat Rate — which pricing model fits your business.