Louisiana consumers will soon be protected from additional fees when using debit cards at retail businesses under a new state law scheduled to take effect August 1.
Act 752, formerly Senate Bill 254 by Sen. Beth Mizell, prohibits retail businesses from charging surcharges on debit card transactions for goods and services. The legislation applies specifically to debit card purchases and does not change existing rules regarding credit card surcharges.
The new law defines a surcharge as an additional fee imposed on a customer for using a debit card. Retail businesses that currently assess debit card processing fees, convenience fees, or similar charges will need to review their payment policies, point-of-sale systems, and payment processor settings before the law becomes effective.
Under the legislation, cardholders who believe they have been charged an unlawful debit card surcharge must first provide written notice to the business before filing a lawsuit. Businesses will have 30 days after receiving the notice to correct the violation and reimburse the customer. If the violation is corrected within that period, no private right of action may be pursued.
The law limits private lawsuits to willful violations, repeated violations, or violations that are not corrected within the allotted cure period.
In addition to consumer enforcement, the Louisiana attorney general will be authorized to bring civil actions against businesses that violate the law. Businesses that fail to comply with an administrative or court order related to a surcharge violation may face civil penalties of up to $500 per violation.
Funds collected through fines and civil penalties will be used by the attorney general’s office to support consumer protection and education efforts.
The legislation also requires the attorney general to establish a toll-free telephone number and an electronic reporting system where consumers can report suspected debit card surcharge violations. Complaints must include the name and address of the business, the date and amount of the transaction, the surcharge amount, and supporting documentation such as receipts or invoices.
Business organizations are encouraging retailers to evaluate their current payment processing practices ahead of the August 1 implementation date to avoid potential compliance issues.
Act 752 becomes effective August 1, 2026.