🟡Relating to skimmers on electronic terminals; authorizing a civil penalty; creating criminal offenses.

🟡 SB 2371: Cracking down on credit card skimmers

What it says it does:
SB 2371 sets up a system to find and remove devices called “skimmers” that criminals place on ATMs, gas pumps, and other payment machines to steal card data.

What it actually changes:
The bill adds a new section to state law requiring merchants and service technicians to disable and secure a machine if a skimmer is found. They must notify law enforcement and the state’s Financial Crimes Intelligence Center. The Texas Commission of Licensing and Regulation is given rulemaking power. Civil fines up to $5,000 per day and new criminal charges apply to those who do not comply.

Who is pushing for it:
Texas Bankers Association supported the bill. The Financial Crimes Intelligence Center was involved.

Who benefits:
Banks and payment card networks gain more structured reporting and reduced fraud losses. Consumers benefit from faster removal of skimmers. Large merchants and service companies get clear checklists to follow.

Who gets left out or exposed:
Small businesses carry the cost of shutting down terminals, securing sites, and facing fines. The public has to wait until investigations close before details are released, limiting real-time awareness of risks.

Why this matters long term:
The law centralizes enforcement power in Austin and delays public transparency until after investigations. This gives large institutions stability but leaves small merchants more vulnerable to penalties and less able to fight cases outside Travis County.

What to watch next:
How the Commission writes the rules. Whether transparency reports will be required after cases close. Whether small businesses get compliance guidance or are left to figure it out.

Bottom line:
SB 2371 strengthens protections against skimmers, but it shifts costs to merchants, centralizes authority, and delays public awareness. Stronger transparency and small-business safeguards will decide if this law serves Texans broadly or mostly helps the financial sector.