Credit card processing and merchant services in Houston, TX
Houston reaches into three counties, and the Comptroller lists the same 8.25% sales tax in each part. The number that really varies is what you pay to take cards.
Houston had 2,397,315 residents in the Census Bureau's July 2025 estimate, and its city limits cross three counties: Harris, Fort Bend and Montgomery. That sounds like a sales tax headache. It isn't. The Comptroller's city rate table lists every part of Houston at 8.25%, made up of the 6.25% state rate, 1% for the city and 1% for the Houston MTA, the transit authority. Set 8.25% for sales at a Houston location and you're right in all three counties.
Two kinds of business stand out in the federal numbers. The 2022 Economic Census counted $43.2 billion in health care and social assistance receipts in the city and $31.5 billion in transportation and warehousing. A clinic front desk and a freight broker's billing office have different card problems, yet the same Texas rule covers both: no surcharge on a debit card, ever, and a credit card ban that is still in the statute. Our Texas page explains where the courts left it.
For a practice, that usually points to the price you pay rather than a fee you pass on. Interchange-plus pricing shows each card at its real interchange cost, so a regulated debit card from a large bank isn't billed like a premium rewards card. For companies paid by invoice, a virtual terminal handles payment links, emailed invoices and recurring billing, no card reader needed.
Restaurants and hotels are a big group as well, with $14.3 billion in accommodation and food services sales in 2022. Whatever you run, send us a recent statement for a free statement review. We'll show your effective rate and tell you plainly if switching isn't worth it.
Payment services we provide
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Common questions
What sales tax rate should a Houston business charge?
8.25% for sales at a Houston location. The Comptroller lists the Harris, Fort Bend and Montgomery County parts of the city at the same total: 6.25% state, 1% city and 1% Houston MTA. Just outside the city line the rate can be lower, so check the address before you open a second site.
Can a Houston medical practice charge patients a card fee?
Not on debit cards: Texas bans debit and stored value card surcharges outright, and Visa and Mastercard do too. On credit cards, the state ban is still in the statute and court protection is limited to surcharges at or below cost, so get legal advice first. We would look at cutting the processing cost itself before anything else. See our medical and dental page.
How do Houston freight and logistics companies take card payments on invoices?
Usually through a virtual terminal. You can key in a card a customer gives you by phone, email a payment link with the invoice, or set up recurring billing for regular accounts. On interchange-plus, each transaction type shows at its own interchange rate, so you can see what invoice payments cost next to card-present sales.
What should a Houston restaurant look for in a card processor?
Start with the setup your floor needs. Wireless terminals let servers take a card at the table, and same-day or next-day funding keeps cash flow steady. Ask for interchange-plus pricing so each card type's cost shows on your statement. Texas bans surcharges on debit cards, so build card costs into your prices rather than adding a fee at the register. Our restaurants page goes further.
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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