Texas Coalition Pushes for Action Against Hidden Credit Card Fees

A coalition in Texas is rallying for legislative action to combat hidden credit card fees that have cost consumers in the Houston area over half a billion dollars during the 2024 holiday season. As lawmakers convene in Austin, the coalition aims to protect consumers and local businesses from these excessive charges.

Key Takeaways

Houston-area consumers paid more than $500 million in hidden fees during the 2024 holiday season.
The coalition, Texans Against Hidden Credit Card Fees, includes various business and consumer associations.
Average shoppers incur between $1,100 and $1,700 annually in hidden fees.
Local small businesses, particularly restaurants, are significantly affected by these fees.

The Hidden Cost of Credit Card Fees

According to the coalition, the hidden fees associated with credit and debit card transactions are not reflected on receipts or statements, making them difficult for consumers to track. Kelsey Erickson Streufert, a spokesperson for the coalition, emphasized that these fees are essentially funds being transferred from local consumers and businesses directly to major credit card companies and banks.

Legislative Action in Austin

As Texas lawmakers gather for their biennial legislative session, the coalition is urging them to take immediate action. Streufert stated, "We are Texas, we don’t have to sit on our hands and wait for D.C. to fix a problem. We can protect our own citizens and consumers." The coalition is advocating for both state and federal legislation to address the issue of hidden credit card fees.

The Impact on Consumers and Businesses

The financial burden of hidden fees is significant. On average, consumers using credit and debit cards are estimated to pay between $1,100 and $1,700 each year in these fees. For many, the only alternative to avoid these charges is to use cash, which is not always feasible in today’s digital economy.

Local businesses, especially restaurants, are feeling the pinch as well. Streufert pointed out that in many cases, banks and credit card companies are profiting more from a restaurant sale than the restaurant itself. This situation raises concerns about the sustainability of small businesses in Texas, which are vital to the state’s economy.

A Call for Bipartisan Support

The coalition is not only focusing on state legislation but is also looking at a bipartisan federal bill that has been introduced in Congress. Streufert believes that there are numerous ways to improve the current situation and that both state and federal efforts are necessary to effectively tackle the problem of hidden credit card fees.

Conclusion

As the Texas legislative session unfolds, the coalition’s efforts to curb hidden credit card fees could lead to significant changes in how consumers and businesses interact with credit card companies. With the potential for new legislation, there is hope that transparency and fairness will be restored in the credit card industry, benefiting both consumers and local businesses alike.