Texas Consumers Victorious in Beating Back Legislative Attempt
To Penalize Those Who Pay with Plastic

Americans for Consumer Education and Competition (ACEC) Congratulates Texas
Consumers Who Sent More Than 100 Letters Opposing Check Out Fee Bill
to State Legislators
Bill Withdrawn Yesterday

Washington, D.C. – Americans for Consumer Education and Competition (ACEC) today congratulated the more than 140 Texas consumers who sent letters to their state legislators last week and throughout the weekend opposing a bill that would have allowed Texas retailers to pass the cost of electronic transactions onto consumers who choose to pay with plastic. The bill's sponsor, Rep. Gary Elkins, withdrew HB 1236 yesterday as the bill was scheduled to be heard by the House of Representative's Financial Institutions Committee.

"This is a major victory for Texas consumers and sends a message to consumers nationwide that it is possible to fight against check out fees and win," said Rebecca Reid, Executive Director of ACEC, a consumer rights and financial literacy advocacy organization. "Merchants who want to impose check out fees on consumers who pay with plastic need to understand that it is an unfair practice and one that threatens consumer choice. Retailers provide the electronic transaction option because they know it brings more consumers into their stores and spurs increased sales. Now they want to pass the cost of providing electronic transactions onto the consumer, penalizing them for their choice of payment."

ACEC alerted its Texas consumers to the bill last week and in less than 24 hours of receiving the news, 74 consumers sent letters to their state representatives. By Monday, March 5th, 145 letters had been sent to state legislators. HR 1236 would have amended current Texas statute that bans surcharging consumers for credit card purchases. Several states have No Surcharge language in statute that protects consumer choice and most credit card companies prohibit merchants from passing the cost of electronic payment processing onto the consumer.

"Members of Congress are also hearing from their constituents opposed to check out fees and what happened in Texas is an example of consumer sentiment nationwide," said Reid. "There is a 'no tolerance' position on check out fees by consumers as witnessed by Texas consumers who made their voices heard loud and clear."

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Americans for Consumer Education & Competition advocates for financial literacy and consumer rights initiatives. ACEC communicates with more than 30 thousand consumers interested in issues from financial literacy to budgeting for retirement to cardholder benefits and rights. In addition, ACEC serves as a clearing-house for information on financial issues, as the organization monitors, tracks and provides analysis of financial legislation and litigation that has a direct impact on consumers.