Tennessee payments and fintech laws

What Tennessee has enacted on payments and fintech, what each law requires, and what the bills still moving would do. Tennessee is one of 42 states that enacted a payments and fintech law in the 2025 and 2026 sessions.

6 new Tennessee laws take effect in 2027

Bills in scope
10bills in scope
Past committee
3past committee
Most recent action
27 May 2026most recent action

Payments and fintech laws enacted in Tennessee

3 payments and fintech laws enacted in the Tennessee Legislature in the 2025 and 2026 sessions, newest first. Each links to the legislature's own page.

  • HB 2502Banks and Financial Institutions - As enacted, clarifies that the service of transmitting money from a location originating in this state to a location outside of the United States or its territories is a taxable service and that such a tax is generally levied on the amount of money transmitted; requires revenues generated from such a tax to be allocated to certain funds and purposes. - Amends TCA Title 4; Title 38; Title 39; Title 45; Title 47; Title 49 and Title 67.Takes effect 1 January 2027

    What it requires: Entities licensed under the Money Transmission Modernization Act must collect tax on money transmitted from locations originating in Tennessee to locations outside the United States or its territories. Revenues generated from this tax must be deposited in the international money transmission tax fund and allocated annually on July 1 according to specified percentages to the state general fund, counties and metropolitan governments, the K-12 education teacher compensation fund, and the Tennessee peace officer standards and training commission.

    Money transmission and licensing

  • HB 2505Criminal Offenses - As enacted, makes it a Class A misdemeanor for a virtual kiosk operator or other person to knowingly install or allow installation of, permit, place, or otherwise operate a virtual currency kiosk in this state. - Amends TCA Title 4; Title 5; Title 6; Title 7; Title 8; Title 12; Title 13; Title 29; Title 39; Title 45; Title 47 and Title 67.Took effect 1 July 2026

    What it requires: A virtual currency kiosk operator or other person must not knowingly install, allow installation of, permit, place, or otherwise operate a virtual currency kiosk in this state.

    Virtual currency and crypto kiosks

  • SB 766Banks and Financial Institutions - As enacted, authorizes a premium finance company to impose and collect a convenience fee from an insured for use of certain payment methods; authorizes a premium finance company to charge and collect a handling charge for certain payment instruments when the payment instrument is not paid by the financial institution from which the instrument is drawn. - Amends TCA Title 56, Chapter 37.Enacted 29 April 2025

    What it requires: A licensee may impose and collect a convenience fee from an insured paying by credit card, debit card, electronic funds transfer, electronic check, or other electronic means not exceeding actual third-party costs incurred for processing. A licensee must notify the insured of the fee amount before completing the transaction and provide an opportunity to cancel without incurring a fee. Licensees may charge a handling charge for dishonored payment instruments but not more than one handling charge per instrument.

    Card surcharges and payment fees

Payments and fintech in Tennessee, by topic

Payments and fintech bills in Tennessee

The bills not yet law, furthest along first, with what each would do.

3Enacted

7Introduced or inactive

10 bills in scope

Introduced or inactive

7

HB 2060Banks and Financial Institutions - As introduced, prohibits a bank from digitizing or otherwise converting money held by the bank on behalf of a consumer into a digital currency, digital medium of exchange, or digital monetary unit of account, including cryptocurrency, without express, written authorization from the consumer for whom the money is held. - Amends TCA Title 45.In committee

What it would do: Prohibits banks, savings and loan associations, and credit unions from converting consumer money into digital currency, cryptocurrency, or digital monetary units without express written authorization. Establishes civil penalties up to $1,000 per violation and private right of action for damages.

HB 2039Consumer Protection - As introduced, prohibits a person from requiring another to use programmable money for a transaction; prohibits an issuer of programmable money from denying a transaction based upon certain factors; requires an issuer of programmable money that denies a transaction to provide reasons for the denial to the affected party upon request; designates violations to be violations of the Consumer Protection Act of 1977 and provides for other forms of relief and enforcement. - Amends TCA Title 47.In committee

What it would do: Prohibits requiring anyone to use programmable money and bars issuers from denying transactions based on political opinions, religious beliefs, medical history, social credit scores, and other specified factors. Requires issuers to provide denial reasons upon request and designates violations as Consumer Protection Act violations with civil remedies including treble damages.

HB 1011Consumer Protection - As introduced, prohibits an online payment system from freezing the funds of a user without first providing the user with a written notice of the online payment system's intent to freeze the user's funds; designates a violation as an unfair or deceptive act or practice pursuant to the Tennessee Consumer Protection Act of 1977. - Amends TCA Title 45 and Title 47, Chapter 18.In committee

What it would do: Requires operators of online payment systems to provide written notice to affected users before freezing their funds, except when the operator reasonably believes financial exploitation, fraud, or legal violations have occurred, in which case notice must be provided within 30 days. Designates violations as unfair or deceptive acts under Tennessee Consumer Protection Act.

HB 967Credit and Debit Cards - As introduced, requires state and local taxes and fees be excluded from the calculation of interchange fees by payment card networks for electronic payment transactions. - Amends TCA Title 67.In committee

What it would do: Requires payment card networks to exclude state and local taxes and fees from interchange fee calculations for electronic payment transactions, either by deducting them at settlement or providing rebates, with civil penalties up to $1,000 per violation.

HB 714Taxes, Sales - As introduced, requires the commissioner of revenue to establish a sales tax remittance schedule that allows dealers making sales to reasonably offset the burden of transaction fees associated with the collection of sales tax. - Amends TCA Title 67, Chapter 6.In committee

What it would do: Requires the commissioner of revenue, in consultation with the state treasurer, to establish a sales tax remittance schedule allowing dealers to hold accumulated sales tax longer to offset transaction fees, based on prior year remittance volume, card transaction percentages, card fees, and federal funds rates.

Bill titles link to the Tennessee Legislature's own page.

What LawSignals covers

What counts as payments and fintech legislation

In scope: Money transmission and licensing; virtual currency and crypto kiosks; card surcharges and payment fees; interchange and card networks; earned wage access; bNPL and bank partnerships; prepaid, gift cards and P2P; and payment fraud and scams.

Questions

Does Tennessee have a payments and fintech law?

Yes. Tennessee enacted 3 payments and fintech laws in the 2025 and 2026 sessions, among them HB 2502, HB 2505 and SB 766. Each is listed on this page with what it requires.

When do Tennessee's payments and fintech laws take effect?

HB 2502 on 1 January 2027 and HB 2505 on 1 July 2026. The others have no single date in their text.

What does Tennessee legislate on most in payments and fintech?

Card surcharges and payment fees (3 bills), Interchange and card networks (3 bills) and Money transmission and licensing (2 bills).

Are these summaries reviewed by a lawyer?

No. Which bills count as Payments and fintech bills, and the line on what each law requires or each bill would do, are drafted by software from the bill's own text and not reviewed by an attorney. Every bill links to the legislature's own record: read the text before relying on it. The list covers bills from the 2025 and 2026 sessions.

Other practice areas in Tennessee

Payments and fintech legislation in other jurisdictions

51 more currently hold bills in this tracker

Know when Tennessee's payments and fintech law changes

An alert when a bill moves, and one report a month on what changed in every state and Congress.

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