1. (a) This section applies to a payment of tuition, a fee, or another charge to an institution of higher education that is made or authorized in person, by mail, by telephone call, or through the Internet by means of:

   1. (1) an electronic funds transfer; or
   2. (2) a credit card.

2. (b) An institution of higher education 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. (1) a discount, convenience, or service charge for the transaction; or
   2. (2) a service charge in connection with a payment transaction that is dishonored or refused for lack of funds or insufficient funds.
3. (c) A fee or other charge under this section must be in an amount reasonable and necessary to reimburse the institution for the expense incurred by the institution in processing and handling the payment or payment transaction.
4. (d) Before accepting a payment by credit card, the institution shall notify the student of any fee to be charged under this section.

Added by Acts 2001, 77th Leg., ch. 118, Sec. 6.01, eff. Sept. 1, 2001.

Amended by Acts 2003, 78th Leg., ch. 1266, Sec. 1.11, eff. June 20, 2003.

Acts 2005, 79th Leg., Ch. 980 (H.B. 1829), Sec. 2, eff. June 18, 2005.