(a) This section applies to a payment of tuition, a fee, or another charge to a private school that is made or authorized in person, by mail, by telephone call, or through the Internet by means of:
(1) a credit card;
(2) a debit card; or
(3) an electronic funds transfer.
(b) A private school may charge a fee or other amount in connection with a payment to which this section applies, in addition to the amount of the tuition, fee, or other charge being paid, including:
(1) a discount, convenience, or service charge for the transaction; or
(2) a service charge in connection with a payment transaction that is dishonored or refused for lack of funds or insufficient funds.

Terms Used In Texas Business and Commerce Code 111.002

  • 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

(c) A fee or other charge under this section must be in an amount reasonable and necessary to reimburse the school for the expense incurred by the school in processing and handling the payment or payment transaction.
(d) Before accepting a payment by credit card, debit card, or electronic funds transfer, the school shall notify the cardholder or other person making the payment of any fee to be charged under this section.

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