Last week, the Texas Department of Banking notified 14 merchants that they are in violation of Texas law and must immediately cease imposing illegal surcharges on debit card purchases. The merchants were also instructed to provide refunds to customers who come into their restaurants and present evidence that they were forced to pay illegal surcharges on debit card purchases.
Banking Commissioner Charles G. Cooper stated, “In investigating the illegal surcharges being incurred by some consumers it has become apparent that the merchants imposing these charges have relied upon erroneous information provided by their payment processor. The good news is that only a handful of consumers in two or three communities have reported this activity. The Department is attempting to eliminate these illegal surcharges before they become widespread affecting more citizens of Texas.”
A prohibition on debit surcharges was championed by IBAT and passed by the Texas Legislature in 2013.
“IBAT appreciates the work of the Texas Department of Banking in addressing illegal surcharges,” said IBAT Executive Vice President Steve Scurlock. “We encourage IBAT member banks to make their customers aware of the prohibition on surcharges and report any violations of law to the Department.”