According to Texans Against Hidden Credit Card Fees, during the 2024 holiday season, consumers in the Houston area paid over half a billion dollars in hidden debit and credit card fees. The money went to the 10 major banks that issue credit cards in the United States as well as two major credit card companies.
According to Kelsey Erickson Streufert, a statewide coalition spokesman, “This is not a number we see on our credit card statement or on our receipts.” This money is traveling directly to Wall Street from Texas households and small companies.
A group of consumer and business organizations, including the Texas Restaurant Association and the Texas Food and Fuel Association, called Texans Against Hidden Credit Card surcharges is pushing for state and federal laws that would regulate surcharges in the credit card sector. The biennial legislative session of Texas lawmakers begins Tuesday in Austin.
“We are Texas, and we don’t have to wait for D.C. to solve our problems,” the message to our Texas lawmakers is. Streufert asserted, “We can defend our own citizens and consumers.” Consequently, we ought to do both.
READ MORE: A new alliance in Texas challenges credit card companies for their hidden fees
According to Streufert, a bipartisan federal bill that would solve the problem has also been submitted to Congress.
There are other ways we can improve the situation, but this is one of those very awful problems,” she remarked.
According to Texans Against Hidden Credit Card Fees, the typical consumer who uses a debit or credit card pays between $1,100 and $1,700 in hidden fees annually. According to Streufert, using cash is one of the only options available to consumers in the absence of laws addressing the problem.
Meanwhile, Streufert stated that local small companies, notably eateries, are being severely impacted by credit card fees.
“There are a lot of restaurant transactions, and the banks and Visa profit more from those sales than the restaurant itself does,” she said. That is the type of markup they are imposing.
