Texas Business and Commerce Code 116.0002 – Fee for Certain Payments by Paper Check Prohibited
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(a) A person that makes a payment to a payee may not charge an additional fee to the payee because the payee elects to receive the payment by paper check instead of by an automated clearinghouse transaction or other electronic funds transfer.
(b) A provision in a contract permitting a person to charge or collect a fee from a payee in violation of Subsection (a) is void and unenforceable.
Terms Used In Texas Business and Commerce Code 116.0002
- Contract: A legal written agreement that becomes binding when signed.
- Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005