Consumers and Main Street Businesses Applaud Sen. Hancock and Rep. Patterson’s Legislation Creating Competition and Transparency to Curb Costly Swipe Fees
SB 2056 / HB 4061 targets hidden credit card processing fees that cost Texans over $10 billion every year
AUSTIN, TX (March 11, 2025) - Today, Texans Against Hidden Credit Card Fees, a coalition of small businesses, local merchants and consumers, announced its support for Senate Bill 2056 / House Bill 4061. Texas Senator Kelly Hancock and Texas Representative Jared Patterson filed the identical bills to address hidden credit card processing fees—also known as “swipe fees”—which cost Texas consumers and businesses over $10 billion every year. This legislation represents a first-of-its-kind approach in the United States, with Texas taking a crucial step toward protecting main street from the financial abuses of Wall Street through much-needed competition and transparency.
“We applaud Sen. Hancock and Rep. Patterson for their visionary leadership in tackling an urgent issue for not only Texas’ 57,000+ restaurants, but also every consumer and main street business in our state,” Emily Williams Knight, Ed.D., President and CEO of the Texas Restaurant Association, said. “Skyrocketing hidden swipe fees are an inflation multiplier that are crushing our local businesses and burdening every family. By introducing transparency and competition, SB 2056 / HB 4061 will help level the playing field, allowing Texans to push back against some of the worst abuses of Wall Street.”
Sen. Hancock and Rep. Patterson introduced their identical bills to address increasing costs in the U.S. credit card processing market, where Visa and Mastercard account for over 76% of the card network segment, and ten banks control over 80% of the card issuing segment. These financial giants have leveraged their market dominance and a lack of transparency to double U.S. swipe fees over the past decade and increase them by more than 50% since 2020. As a result, Americans pay the highest rates in the industrialized world and about six times the rates paid in Europe.
“Texas families are unknowingly paying over a thousand dollars each year in hidden credit card fees—charges that inflate the cost of everyday goods and services,” Sandie Haverlah, president of the Texas Consumer Association, said. “This legislation is a much-needed step toward transparency, requiring credit card companies to provide clarity on fees and empowering consumers to make informed choices that lead to savings and financial security.”
SB 2056 / HB 4061 protects consumers and main street businesses through a number of provisions, including:
- Requiring consumer statements to include information about the swipe fees charged for their credit card transactions;
- Prohibiting swipe fee price fixing; and
- Prohibiting retaliation against a merchant that offers cash, debit or gift card discounts.
Texans Against Hidden Credit Card Fees urges lawmakers to pass SB 2056 / HB 4061 this legislative session to protect consumers and main street businesses by fostering a more competitive and transparent marketplace. For more information about the coalition and its advocacy efforts, visit
www.txcreditcardtruth.com.
ABOUT TEXANS AGAINST HIDDEN CREDIT CARD FEES
Texans Against Hidden Credit Card Fees is a coalition of main street businesses and consumers who are working together to advocate for greater competition, transparency and fairness within Texas’ credit card market. Current member organizations include: Texas Restaurant Association, Texas Consumer Association, Texas Retailers Association, Texas Food & Fuel Association, NFIB Texas, Texas Travel Alliance, Texas Automobile Dealers Association, Texas Hotel & Lodging Association, Texas Package Stores Association, Theatre Owners of Mid-America, Texas Live Events Coalition, Texas Nursery & Landscape Association and Texas Association of Campground Owners.