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Merchant services · Texas

Merchant Services in Texas

About 3.52 million small businesses operate in Texas, by the SBA's 2025 count. That's second only to California. They run from Hill Country barbecue pits and Rio Grande Valley retailers to Permian Basin service companies and Houston auto shops. Card processing costs land on all of them, and lots of Texas owners have been told, by a sales rep or a Facebook group, that they can "just add 3%." In Texas that advice skips some important law. Here's what the statutes actually say, followed by the processing and ATM options we offer Texas merchants.

General information, not legal advice. Texas surcharge law is unsettled, so talk to a Texas attorney before adding any card fee.

What Texas law says

Credit cards: Business & Commerce Code § 604A.0021

The statute still says a seller "may not impose a surcharge on a buyer who uses a credit card" instead of cash, a check, or similar payment. Government entities and private schools are exempt.

In 2018, a federal court in Rowell v. Paxton held the ban unconstitutional as applied to the merchants who brought that case and barred enforcement against them. The Texas Attorney General later wrote, in Opinion KP-0257 (2019), that because the ruling was as-applied, "circumstances may still exist" where the statute prohibits a credit card surcharge. The AG pointed in particular to surcharges larger than the merchant's actual card cost. The statute is still in the code today.

Debit and prepaid cards: § 604A.002

A separate section flatly prohibits surcharges on debit or stored-value cards. That one wasn't part of the court challenge.

Penalties

A knowing violation can carry a civil penalty of up to $500 per violation. The Attorney General or a local prosecutor must first send a notice of noncompliance with a 30-day chance to cure, except for repeat violators (§ 604A.003).

What the statute allows

Texas law defines a "surcharge" so that it excludes a discounted price charged to buyers who pay with cash. That's why a properly built cash discount or dual-pricing program is the route most Texas merchants take. The posted card price is the regular price, and cash buyers pay less.

Card-network rules still apply

Network rules sit on top of Texas law. For Visa, a surcharge can only apply to credit cards. It's capped at your actual cost or 3%, whichever is lower. Visa requires 30 days' notice to your processor and disclosure at the entrance, at checkout, and on the receipt. A Visa/Mastercard settlement now pending (fairness hearing November 16, 2026) would loosen some network rules, but it can't override a state statute.

What Texas businesses tend to need

  • Oilfield, construction, and trade service companies often invoice large tickets to other businesses. Business-to-business card data (Level 2 and Level 3) and ACH can matter more than counter hardware.
  • Barbecue joints, taquerias, and food trucks need fast lines, tip handling, and mobile readers that work at festivals, tailgates, and rodeo grounds.
  • Feed stores, ranch supply, and rural retailers often have seasonal swings and customers who like to pay cash. A clear cash price helps both sides.
  • Auto repair, tire, and body shops take big tickets where per-transaction costs add up, so interchange-plus pricing is worth a look.
  • Border-region retailers in Laredo, McAllen, and El Paso see cross-border shoppers and a mix of payment types, so hardware and settlement options deserve care.

Your options, side by side

  1. Dual pricing or a cash discount (optional). Both prices are posted, structured around the Texas definition of a surcharge.
  2. Interchange-plus. You pay the network cost plus a fixed, disclosed markup. This often fits high-ticket or B2B shops.
  3. Flat-rate. One rate, simple to forecast.
  4. Square, if you prefer it. We'll include it as an option in your comparison.

We won't promise a savings number before we've reviewed your statement. It depends on your volume, card mix, and current contract.

ATMs in Texas

Dance halls, ice houses, flea markets, gas stations, and game-day venues across Texas still see plenty of cash. If an on-site ATM makes sense for you:

  • You purchase and own the machine. It's a purchase, not a loan.
  • You get the agreement terms in writing before signing. Terms are subject to the partner agreement.
  • Cash loading, the withdrawal fee you set, and service arrangements are agreed up front. We don't promise monitoring, maintenance, or a revenue share. ATM surcharge income isn't guaranteed.
  • Machines come through our ATM partner, and card processing comes through our processing partners.

FAQ

Is it legal to add a credit card fee in Texas?

It's unsettled. § 604A.0021 still bars it. The 2018 Rowell ruling protected only the merchants who sued, and the Attorney General says the law can still apply in some situations. A cash discount is the lower-risk approach. Ask a Texas attorney.

Can I charge a fee for debit cards in Texas?

No. Texas law (§ 604A.002) and the card networks both prohibit debit surcharges.

What's the difference between a cash discount and a surcharge under Texas law?

Texas defines a surcharge as an increase in price for card users that isn't imposed on others, and expressly excludes a discounted price for cash buyers. So posting a regular price and giving cash buyers less off is treated differently from adding a fee for cards.

What's the penalty for an improper surcharge?

Up to $500 per knowing violation, after a notice and a 30-day cure period for first-time issues.

Do you work with Texas businesses from Tennessee?

Yes. We're based in Clifton, Tennessee, and we work with merchants nationwide by phone and email.

Who owns the ATM?

You do. You buy the machine. Terms are subject to the partner agreement, which is given to you in writing before you sign.

Get a no-obligation comparison

Send a recent statement, and we'll show a Texas-compliant cash discount, interchange-plus, flat-rate, and your current setup next to each other.