Legal Convenience Fees in Texas

Convenience fees are everywhere. The grocery store. The pharmacy. Even when paying the state. However, some dealers hesitate to impose these fees.

Post COVID, customers expect dealers to support online payments. 81% of customers report that they are more likely to make a payment if they can make it from their phone. Dealers risk late or missed payments by not supporting online payments.

Dealers spend thousands of dollars in payment processing fees per month. The OCCC has protected the consumer by forcing dealers to refund fees that were not legally charged.
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Convenience fees have to have to meet specific criteria to be considered a legal charge for online payments.

• The entire fee has to be collected by the third party payment processor. The dealer cannot retain any of the convenience fee

• The fee must be disclosed as a separate line item before payment is made, preferably in writing

• The dealer cannot receive any direct or indirect benefit from the fee

• There must be alternative methods of payment. For example, the customer can drive into the dealership and pay cash

• The dealer must retain documentation that the entire fee is remitted to the third party payment processor
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Taking payments over the phone exposes dealers to risks, as they may be unable to prove fee disclosure before payment. LeftLane addresses this as the customer pays from a screen that clearly discloses the convenience fee.
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Call us at 512-222-9549 or book a demo to start saving thousands per month on payment processing fees.