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Committee adopts amendment and advances bill clarifying electronic-payment convenience fees

Florida Senate Committee on Commerce and Tourism · January 13, 2026

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Summary

The committee adopted an amendment and reported favorably on SB 838, which clarifies that limited convenience fees for optional electronic payments on retail installment contracts are permissible if reasonable and disclosed; senators pressed for clearer 'reasonableness' guardrails.

Senate Bill 838, sponsored by Senator Yarborough, aims to remove a legal ambiguity the sponsor said has encouraged "frivolous litigation" over convenience fees tied to electronic payments for retail installment contracts. Yarborough told the committee the bill will "clearly establish that convenience fees for electronic payments in connection with retail installment contracts are permissible" while requiring clear disclosure and a fee-free payment option.

The committee considered and adopted an amendment (barcode 254968) that adds the word "retail" in two places to clarify scope. The amendment passed without recorded opposition.

Members voiced conditional support but asked for tighter guardrails. Senator Smith said she planned to vote yes but warned that what consumers consider "reasonable" may differ from processors or retailers, and gave an example: "If it's a 3% transaction of a $1,000 monthly car note, that's $30. I don't know that it costs $30 to process an electronic payment." Senator Bracy Davis asked who determines whether a fee is reasonably related to processing expense and whether a cap exists. Yarborough responded fees are generally a fixed amount or a percentage and noted a typical processing estimate "somewhere about 3 and a half percent," but he emphasized consumers would have a fee-free option and the fee must be associated with the actual cost to process the payment.

A committee substitute for SB 838, as amended, was reported favorably on roll call. The transcript records adoption of the amendment and the sponsor’s assurances that he will work with members on language to prevent unreasonable or predatory fees.

Actions recorded in committee: adoption of amendment to add clarifying language and committee substitute reported favorably. The record does not include a numeric roll-call tally in published transcript text.