Tex. Bus. & Com. Code § 3.506 · Subchapter E. DISHONOR
PROCESSING FEE BY HOLDER OF PAYMENT DEVICE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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.
(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.
Notes and commentary — not statutory text
History
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 2.001(a), eff. Sept. 1, 2001; Amended by Acts 2003, 78th Leg., ch. 413, Sec. 1, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 95 (S.B. 1563), Sec. 11, eff. September 1, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 333 (H.B. 2793), Sec. 1, eff. September 1, 2011.
Acts 2019, 86th Leg., R.S., Ch. 1352 (S.B. 346), Sec. 4.01, eff. January 1, 2020.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BC/htm/BC.3.htm
- Text hash
- sha256 869cc81653430a0f8a37fbc40da52d062e3f14363e51b9fa7e6c3edfe8e95252
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Code of Criminal Procedure
Cited by 9 provisions
Provisions in this library whose text cites Tex. Bus. & Com. Code § 3.506. Each shows the citation as that text prints it.
Business & Commerce Code
Code of Criminal Procedure
Finance Code
- Tex. Fin. Code § 306.006CERTAIN AUTHORIZED CHARGES ON COMMERCIAL LOANS.Printed as Section 3.506, Business & Commerce Code
- Tex. Fin. Code § 342.260ALTERNATE INTEREST CHARGE COMPUTATION METHODS.Printed as Section 3.506, Business & Commerce Code
- Tex. Fin. Code § 342.502AMOUNT AUTHORIZED.Printed as Section 3.506, Business & Commerce Code
- Tex. Fin. Code § 345.106PROCESSING FEE FOR RETURNED CHECK.Printed as Section 3.506, Business & Commerce Code
- Tex. Fin. Code § 346.103FEES.Printed as Section 3.506, Business & Commerce Code
- Tex. Fin. Code § 351.0021AUTHORIZED CHARGES.Printed as Section 3.506, Business & Commerce Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.