HB 4134: car lenders can charge a fee for electronic payments

Caption

relating to a convenience fee for processing electronic payments for motor vehicles.

Summary

Capped at $10 or five percent, whichever is less.

This bill lets the company holding a car buyer's installment loan, or its agent, charge a fee when the buyer pays by card, electronic transfer, or another electronic method. The fee is capped at $10 or five percent of the payment, whichever is less, and must be reasonably tied to the actual processing cost. The lender must also offer a free way to pay, such as check, cash, or money order, cannot make electronic payment the expected method, and must disclose the fee and the free options before the buyer agrees, starting September 1, 2025.

Labels

Labels: NO AUTOGRAPH. Became law without the governor's signature on Jun 20, 2025.CROSS-PARTY HANDOFF. Lead author John Lujan (R) in the House. Lead sponsor José Menéndez (D) in the Senate. Party as the Legislative Reference Library lists it for the 89th Legislature.

Receipt

The receipt

89R-HB4134 · 2025-03-10

SOLD BY

Rep. John LujanRHouse 118

ITEM

relating to a convenience fee for processing electronic payments for motor vehicles.

WHAT IT DOES

Capped at $10 or five percent, whichever is less.

This bill lets the company holding a car buyer's installment loan, or its agent, charge a fee when the buyer pays by card, electronic transfer, or another electronic method. The fee is capped at $10 or five percent of the payment, whichever is less, and must be reasonably tied to the actual processing cost. The lender must also offer a free way to pay, such as check, cash, or money order, cannot make electronic payment the expected method, and must disclose the fee and the free options before the buyer agrees, starting September 1, 2025.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 22, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Mar 10, 2025Filed
Mar 27, 2025Read first time
Mar 27, 2025Referred to Pensions, Investments & Financial Services
Apr 7, 2025Scheduled for public hearing on . . .
Apr 7, 2025Considered in public hearing
Apr 7, 2025Testimony taken/registration(s) recorded in committee
Apr 7, 2025Left pending in committee
Apr 9, 2025Considered in formal meeting
Apr 9, 2025Reported favorably w/o amendment(s)
Apr 11, 2025Comte report filed with Committee Coordinator
Apr 14, 2025Committee report distributed
Apr 15, 2025Committee report sent to Calendars
Apr 22, 2025Considered in Calendars
Apr 25, 2025Placed on General State Calendar
Apr 28, 2025Read 2nd time
Apr 28, 2025Passed to engrossment
Apr 28, 2025Record vote RV#626
Apr 29, 2025Read 3rd time
Apr 29, 2025Passed
Apr 29, 2025Record vote RV#731
Apr 29, 2025Statement(s) of vote recorded in Journal
Apr 29, 2025Reported engrossed
Apr 29, 2025Received from the House
Apr 30, 2025Read first time
Apr 30, 2025Referred to Business & Commerce
May 23, 2025Scheduled for public hearing on . . .
May 23, 2025Considered in public hearing
May 23, 2025Testimony taken in committee
May 23, 2025Left pending in committee
May 25, 2025Considered in public hearing
May 25, 2025Vote taken in committee
May 26, 2025Reported favorably w/o amendments
May 26, 2025Recommended for local & uncontested calendar
May 26, 2025Committee report printed and distributed
May 27, 2025Placed on intent calendar
May 27, 2025Rules suspended-Regular order of business
May 27, 2025Read 2nd time & passed to 3rd reading
May 27, 2025Vote recorded in Journal
May 27, 2025Three day rule suspended
May 27, 2025Record vote
May 27, 2025Read 3rd time
May 27, 2025Passed
May 27, 2025Record vote
May 29, 2025Senate passage reported
May 30, 2025Reported enrolled
May 30, 2025Signed in the House
May 31, 2025Signed in the Senate
May 31, 2025Sent to the Governor
Jun 20, 2025Filed without the Governor's signature
Jun 20, 2025Effective on 9/1/25

FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 141 yea · 4 nay

Senate · 30 yea · 1 nay

Sources

House: Final passage · Apr 29, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 27, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

John Lujan

Donors

Texans for Lawsuit Reform PAC$305K Greg Abbott Campaign$92K Dealon, LLC$25K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Jul 30, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$305,300.00

Texans for Lawsuit Reform PAC

$305,300.00

Cash: $305,000.00
Paid by others: $300.00
Total: $305,300.00

fundraiser $300.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Oct 29, 2024 to Jun 27, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100977051, 101012920.

Greg Abbott Campaign$91,570.37

Greg Abbott Campaign

$91,570.37

Cash: $0.00
Paid by others: $91,570.37
Total: $91,570.37

digital $42,596.82canvassing $41,351.50texting $7,403.50travel $218.55

Also funds 9 other sitting lawmakers.

Derived recipient stock · Oct 29, 2024 to Sep 2, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team

Sources

Derived itemized flow · Oct 29, 2024 to Nov 13, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100977051.

Dealon, LLC$25,000.00

Dealon, LLC

$25,000.00

Cash: $25,000.00
Paid by others: $0.00
Total: $25,000.00

Also funds 4 other sitting lawmakers.

Derived recipient stock · Oct 28, 2024 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Oct 30, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100977051.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$305,300.00

Cash: $305,000.00
Paid by others: $300.00
Total: $305,300.00

fundraiser $300.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Oct 29, 2024 to Jun 27, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100977051, 101012920.

×

Greg Abbott Campaign

$91,570.37

Cash: $0.00
Paid by others: $91,570.37
Total: $91,570.37

digital $42,596.82canvassing $41,351.50texting $7,403.50travel $218.55

Also funds 9 other sitting lawmakers.

Derived recipient stock · Oct 29, 2024 to Sep 2, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team

Sources

Derived itemized flow · Oct 29, 2024 to Nov 13, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100977051.

×

Dealon, LLC

$25,000.00

Cash: $25,000.00
Paid by others: $0.00
Total: $25,000.00

Also funds 4 other sitting lawmakers.

Derived recipient stock · Oct 28, 2024 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Oct 30, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100977051.

Votes5

Senate May 27, 2025

Yea: 30
Nay: 1
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

HughesNay

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

The bill was read third time and was passed by the following vote: Yeas 30, Nays 1. (Same as previous roll call)

Published stock of positions for this vote, except where marked derived.

Yea: 30 (published)
Nay: 1 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 27, 2025

Yea: 30
Nay: 1
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

HughesNay

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

Senator Menéndez moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that HB 4134 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 30, Nays 1.

Published stock of positions for this vote, except where marked derived.

Yea: 30 (published)
Nay: 1 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 27, 2025

Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

HughesNay

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

Senator Menéndez moved to suspend the regular order of business to take up for consideration HB 4134 at this time on its second reading: HB 4134, Relating to a convenience fee for processing electronic payments for motor vehicles. The motion prevailed. Senator Hughes asked to be recorded as voting "Nay" on suspension of the regular order of business. The bill was read second time and was passed to third reading by a viva voce vote.

Published stock of positions for this vote, except where marked derived.

Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

House Apr 29, 2025

Yea: 141
Nay: 4
Present, not voting: 1
Absent: 3
Excused: 1

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 731

HB 4134 was passed by (Record 731): 141 Yeas, 4 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 141 (published)
Nay: 4 (published)
Present, not voting: 1 (published)
Absent: 3 (derived from named list)
Excused: 1 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House Apr 28, 2025

Yea: 142
Nay: 4
Present, not voting: 1
Absent: 2
Excused: 1

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 626

HB 4134 was passed to engrossment by (Record 626): 142 Yeas, 4 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 142 (published)
Nay: 4 (published)
Present, not voting: 1 (published)
Absent: 2 (derived from named list)
Excused: 1 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses7

For: 6
Against: 0
On: 1

Names

For

DriveTime1 registration
HB Strategies1 registration
Self; Abilene Used Car Sales, Inc1 registration
Texas Automobile Dealers Association1 registration
Texas Consumer Credit Coalition1 registration
Texas Independent Automobile Dealers Association1 registration

On

Office of Consumer Credit Commissioner1 registration

Sources

7 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 22, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Mar 10, 2025

06/20/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · House Committee Report · Engrossed · Senate Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Companion

SB 1736 by Menéndez (identical)

Subjects

Electronic Information Systems

Financial--General

CREDIT & DEBIT CARDS

ELECTRONIC FUNDS TRANSFER

Text

The text as introduced · 277 words

By: Lujan
H.B. No. 4134

A BILL TO BE ENTITLED

AN ACT

relating to a convenience fee for processing electronic payments

for motor vehicles.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter E, Chapter 348, Finance Code, is

amended by adding Section 348.416 to read as follows:

Sec. 348.416. CONVENIENCE FEE FOR PROCESSING ELECTRONIC

PAYMENTS AUTHORIZED. (a) In this section, "electronic payment"

means a payment made by credit card, debit card, electronic funds

transfer, electronic check, or other electronic method.

(b) A holder of a retail installment contract or the

holder's agent may collect a fee for processing a retail buyer's

electronic payment under the contract only if:

(1) the fee is reasonably related to the expense

incurred by the holder or holder's agent in processing the

electronic payment;

(2) the fee does not exceed the lesser of $10 or five

percent of the amount of the payment; and

(3) the holder or holder's agent:

(A) allows the buyer to make a payment by a method

other than an electronic payment that does not incur a fee;

(B) does not establish electronic payment as the

expected form of payment; and

(C) informs the buyer of the following before the

buyer agrees to make an electronic payment:

(i) the amount of the fee to be charged

under this section;

(ii) that the buyer may make a payment by an

alternative method that does not incur a fee, including by check,

cash, or money order; and

(iii) that the holder or holder's agent may

not establish electronic payment as the expected form of payment.

SECTION 2. This section is effective September 1, 2025.

Verdict: No flags

The receipt

SOLD BY

ITEM

WHAT IT DOES

CHARGES

TOTAL

HISTORY

SIGNED FOR BY

Donors

Texans for Lawsuit Reform PAC

Greg Abbott Campaign

Dealon, LLC

Texans for Lawsuit Reform PAC

Greg Abbott Campaign

Dealon, LLC

Senate May 27, 2025

Senate May 27, 2025

Senate May 27, 2025

House Apr 29, 2025

House Apr 28, 2025

For

On

Companion