Small businesses, credit unions, and community banks have expressed opposition to Senate Bill 2026 (SB 2026) and House Bill 4124 (HB 4124), citing concerns over the burdens these proposed changes to credit card processing could impose. This announcement was made in a press release on March 13, 2025.

According to the press release, small businesses argue that SB 2026 and HB 4124 would mainly benefit large retailers such as Walmart and Home Depot while offering minimal savings for smaller enterprises. These businesses may face costly adjustments to their credit card processing systems. The Electronic Payments Coalition suggests that any increases in fees stem from retailer revenue growth. Additionally, there is concern that customers might be compelled to pay sales tax and gratuities in cash or by check.

Donna Finley, owner of Casa Thomas, The Shack Grill, and Austin Hall in Nacogdoches, Texas, said: "Carving out sales tax and tips from every credit card transaction would create chaos for small businesses like mine and cost me money. Bad policies like this proposal fail to take into account the realities of running a small business and could harm hundreds of local restaurants, shops and service providers across Texas. Lawmakers must protect the small businesses that keep our communities strong — not put more obstacles in our way."

Christopher Williston, President and CEO of the Independent Bankers Association of Texas, said: "The perennial failure of this proposal around the country points to the fact that it is fundamentally inoperable, standing to disrupt the payment flow of every business in America. It’s an ill-conceived money grab by big retailers who benefit from the convenience of payments and banks’ covering the cost of rampant debit/credit fraud but don’t want to help cover the costs."

Caroline Willard, President/CEO of Cornerstone League, commented: "Senate Bill 2026 and House Bill 4124 pose a serious threat to the financial well-being of Texas consumers and the credit unions that serve them. These bills would disrupt the fair and balanced financial ecosystem by limiting credit unions' ability to offer competitive, member-focused services. At a time when hardworking Texans rely on credit unions for affordable loans and financial guidance, these measures would only benefit big banks and special interests at the expense of Main Street. We urge lawmakers to stand with credit unions and the millions of members who depend on them."

Over the past 17 years, similar legislation has been reviewed and declined by 30 states. Southwest Airlines has also opposed these bills due to potential negative effects on customer rewards programs.