---
title: HB 241. Contracts; convenience fees for payment by electronic means; revise provisions
collection: bills
id: 2025-2026/hb241
cite_as: HB 241, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb241
md_url: https://georgiacommons.org/bills/2025-2026/hb241.md
text_url: https://georgiacommons.org/bills/2025-2026/hb241/text
source_url: https://www.legis.ga.gov/legislation/69846
date: 2025-05-14
status: passed
corpus_version: bills-2026-08-28
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/bills/2025-2026.md
previous: https://georgiacommons.org/bills/2025-2026/hb240.md
next: https://georgiacommons.org/bills/2025-2026/hb242.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 976
omitted_url: https://georgiacommons.org/bills/2025-2026/hb241.md?full=1
bill_number: HB 241
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-05-14
last_action: Effective Date 2025-07-01
sponsors:
  - Trey Rhodes
  - Noel Williams
  - Demetrius Douglas
  - Johnny Chastain
  - Carter Barrett
  - Will Wade
  - Shawn Still
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB241/2025
upstream_id: 1955610
summaries_model: claude-sonnet-5
topic_tags:
  - convenience fees
  - consumer loans
  - electronic payments
  - contracts law
  - insurance premium financing
---

# HB 241. Contracts; convenience fees for payment by electronic means; revise provisions

## Text

25 LC 44 3072S/AP
House Bill 241 (AS PASSED HOUSE AND SENATE)
By: Representatives Rhodes of the 124th, Williams of the 148th, Douglas of the 78th, Chastain
of the 7th, Barrett of the 24th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 1 of Title 13 of the Official Code of Georgia Annotated, relating to1
general provisions regarding contracts, so as to revise provisions regarding convenience fees2
for payment by electronic means; to provide for related matters; to repeal conflicting laws;3
and for other purposes.4
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5
SECTION 1.6
Chapter 1 of Title 13 of the Official Code of Georgia Annotated , relating to general7
provisions regarding contracts, is amended by revising Code Sec tion 13-1-15, relating to8
convenience fee and when appropriate, as follows:9
"13-1-15.10
(a) As used in this Code section, the term:11
(1) 'Actual cost' means the amount paid by a lender to a third party or the amount12
incurred by a third party for the processing of a payment made by electronic means. If13
a lender or merchant is a subsidiary of an entity that processe s payments made by14
electronic means, the parent entity shall be considered a third party.15
H. B. 241
- 1 -
25 LC 44 3072S/AP
(2) 'Payment by electronic means' means the remittance of an amount owed through the16
use of a credit card, debit card, electronic funds transfer, el ectronic check, or other17
electronic method.18
(b) In addition to any other charges, interest, and fees permitted by law and subject to the19
terms and condition s of the debit card or credit card acceptanc e agreement, a lender or20
merchant may collect a nonrefundable convenience fee from any person electing to utilize21
an option of payment by electronic means. Such convenience fee shall be in an amount22
that represents the actual cost to a lender or merchant; provid ed, however, that in lieu of23
the actual cost, a lender or merchant is authorized to collect a convenience fee which does24
not exceed the average of the actual cost incurred for a specific type of payment made by25
electronic means for which such lender or merchant imposes a co nvenience fee, or a fee26
of up to $5.00, whichever is greater.27
(c) No convenience fee shall be charged unless a lender or merchant also provides a direct28
payment option by check, cash, or money order or payment by electronic means in which29
no convenience fee is imposed.30
(d) Any lender or merchant imposing a convenience fee as provi ded for in this Code31
section shall provide clear disclosure of such fee prior to imp osition. Such notice shall32
include the dollar amount of such fee, a statement that such fe e is nonrefundable, and a33
statement that such fee is charged for payment by electronic means.34
(e) This Code section shall apply only to loans made pursuant to Chapter 1 of Title 7,35
installment loans made pursuant to Chapter 3 of Title 7, retail installment and home36
solicitation sales contracts entered into pursuant to Article 1 of Chapter 1 of Title 10, motor37
vehicle sales financing contracts entered into pursuant to Article 2 of Chapter 1 of Title 10,38
and insurance premium finance agreements entered into pursuant to Chapter 22 of Title 33;39
provided, however, that a convenience fee authorized under this Code section shall not40
constitute interest, an additional charge, a time price differe ntial, a finance charge, or a41
service charge within the meaning of Code Section 7-3-12, 10-1-4, 10-1-33, or 33-22-9.42
H. B. 241
- 2 -
25 LC 44 3072S/AP
(f) Nothing contained in Code Section 7-4-18 shall be construed to amend or modify the43
provisions of this Code section."44
SECTION 2.45
All laws and parts of laws in conflict with this Act are repealed.46
H. B. 241
- 3 -

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

House Bill 241 revises Georgia's law on convenience fees charged for paying certain loans and contracts electronically, changing how the fee amount is calculated and what disclosures lenders and merchants must give.

### Plain-language summary

Georgia law already lets lenders and merchants charge a nonrefundable convenience fee when someone pays a bill using a credit card, debit card, electronic funds transfer, or similar electronic method. This bill rewrites that law, O.C.G.A. section 13-1-15, to change how much can be charged and to add clearer definitions and rules.
The bill defines 'actual cost' as what a lender pays a third party to process the electronic payment, and says that if the lender's own parent company processes the payment, that parent counts as the third party. It lets a lender or merchant charge a convenience fee based on actual cost, or instead charge an average cost for that type of payment, or a flat $5.00 fee, whichever amount is greater. The fee can only be charged if a free payment option, like check, cash, or money order, is also offered, and customers must be told the fee amount and that it is nonrefundable before they pay. The law applies only to specific types of loans and sales contracts listed in the bill, such as certain consumer loans, retail installment contracts, motor vehicle financing, and insurance premium finance agreements.

### What it does

- Rewrites O.C.G.A. section 13-1-15 to redefine 'actual cost' for electronic payment processing, including treating a parent company as a third party if it processes payments for its subsidiary.
- Allows lenders and merchants to charge a convenience fee equal to actual cost, or alternatively an average cost for that payment type, or a flat $5.00 fee, whichever is greater.
- Requires that a fee-free payment option (check, cash, money order, or a no-fee electronic method) always be available before any convenience fee can be charged.
- Requires clear disclosure of the fee amount, its nonrefundable nature, and that it applies to electronic payment before the fee is imposed.
- Limits the law's application to specific contract types, including consumer loans, installment loans, retail installment and home solicitation sales contracts, motor vehicle sales financing, and insurance premium finance agreements.
- Clarifies that a convenience fee under this section does not count as interest, a finance charge, or a service charge under several other Georgia Code sections.

### Who it affects

Lenders, retailers, and merchants that accept electronic payments for consumer loans, installment sales contracts, motor vehicle financing agreements, or insurance premium finance agreements, as well as the customers who make payments on these types of contracts using credit cards, debit cards, or other electronic methods.

### Why it matters

Consumers paying certain loans or contracts electronically could see convenience fees calculated differently, potentially up to $5.00 even if actual processing costs are lower, but they must still be offered a free payment method and told about the fee in advance before being charged.

### Key provisions

- Section 1 revises O.C.G.A. section 13-1-15(a) to define 'actual cost' and 'payment by electronic means,' including treating a parent company as a third party processor.
- Subsection (b) sets the convenience fee at actual cost, or alternatively at an average cost for that payment type or a flat $5.00, whichever is greater.
- Subsection (c) requires that a free payment option (check, cash, money order, or no-fee electronic payment) be offered before any convenience fee can be charged.
- Subsection (d) requires disclosure of the fee amount, its nonrefundable status, and that it applies to electronic payments, before the fee is imposed.
- Subsection (e) limits the law to specific contract types under Titles 7, 10, and 33 and clarifies the fee is not interest or a finance charge under listed Code sections.
- Subsection (f) clarifies that Code Section 7-4-18 does not override this convenience fee provision.
- Section 2 repeals conflicting laws.

## Status

- Status: Passed (2025-05-14)
- Last action: Effective Date 2025-07-01 (2025-05-14)
- Sponsors: Trey Rhodes, Noel Williams, Demetrius Douglas, Johnny Chastain, Carter Barrett, Will Wade, Shawn Still
- Official page: https://www.legis.ga.gov/legislation/69846

> The history, votes, and amendments (976 characters) are at https://georgiacommons.org/bills/2025-2026/hb241.md?full=1