Regular Session
Government Affairs & Regulatory Compliance Analysis
Senate Bill 2371 criminalizes the disposal of payment card skimmers and mandates a strict "report and preserve" protocol for all Texas businesses operating electronic terminals (POS, ATMs, fuel pumps). This legislation shifts skimmer discovery from an internal loss-prevention matter to a mandatory state reporting event, exposing businesses to civil penalties of up to $5,000 per day and staff to criminal liability for non-compliance.
Sen. Robert Nichols·Senate Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-09-01). Review with your legal and compliance teams to understand implications.
Affected business types:
lowMinimal cost impact anticipated.
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JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
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This bill's path through the Texas Legislature
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Common questions about SB2371
Senate Bill 2371 criminalizes the disposal of payment card skimmers and mandates a strict "report and preserve" protocol for all Texas businesses operating electronic terminals (POS, ATMs, fuel pumps). This legislation shifts skimmer discovery from an internal loss-prevention matter to a mandatory state reporting event, exposing businesses to civil penalties of up to $5,000 per day and staff to criminal liability for non-compliance.
SB2371 was authored by Texas Senator Robert Nichols during the Regular Session.
SB2371 was signed into law by Governor Greg Abbott on May 27, 2025.
SB2371 is enforced by Financial Crimes Intelligence Center (FCIC), Local Law Enforcement Agencies, Office of the Attorney General (Civil Penalty Collection) and Texas Commission of Licensing and Regulation (TDLR).
The regulatory priority for SB2371 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB2371 is estimated as "low". This may vary based on industry and implementation requirements.
SB2371 addresses topics including civil remedies & liabilities, crimes, crimes--miscellaneous, electronic information systems and financial.
Key dates for SB2371: Effective date is 2025-09-01. Rulemaking: Adopt rules prescribing the specific manner and form for notifying the Center and merchants regarding discovered skimmers. (Prior to 2025-09-01). Consult with legal counsel regarding applicability.
SB2371 establishes the following penalties: civil penalty of Up to $5,000 per day for Any violation of Chapter 607A or adopted rules (e.g., failure to report, failure to disable terminal).; criminal penalty of Class C Misdemeanor for Refusing to allow an inspection of an electronic terminal by the Center or law enforcement.; criminal penalty of Class B Misdemeanor for Negligently or recklessly disposing of a skimmer installed by another person.. Consult with legal counsel for specific applicability to your situation.
SB2371 primarily affects banks, credit unions, and financial services firms. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
