(a) For purposes of this section, “payment device” means any check, item, paper or electronic payment, or other payment device used as a medium for payment.
(b) On return of a payment device to the holder following dishonor of the payment device by a payor, the holder, the holder’s assignee, agent, or representative, or any other person retained by the holder to seek collection of the face value of the dishonored payment device may charge the drawer or indorser a maximum processing fee of $30.

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Terms Used In Texas Business and Commerce Code 3.506

  • Contract: A legal written agreement that becomes binding when signed.
  • 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
  • Rule: includes regulation. See Texas Government Code 311.005
  • Statute: A law passed by a legislature.
  • Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005

(c) A person may not charge a processing fee to a drawer or indorser under this section if a reimbursement fee has been collected under Article 102.007(e), Code of Criminal Procedure. If a processing fee has been collected under this section and the holder subsequently receives a reimbursement fee collected under Article 102.007(e), Code of Criminal Procedure, the holder shall immediately refund the fee previously collected from the drawer or indorser.
(d) Notwithstanding Subtitle B, Title 4, Finance Code, or any other law, a contract made under Subtitle B, Title 4, Finance Code, may provide that on return of a dishonored payment device given in payment under the contract, the holder may charge the obligor under the contract the processing fee authorized by this section, and the fee may be added to the unpaid balance owed under the contract. Interest may not be charged on the fee during the term of the contract.
(e) This section does not affect any right or remedy to which the holder of a payment device may be entitled under any rule, written contract, judicial decision, or other statute.