A new Louisiana law makes it illegal to charge customers extra for paying with a debit card. Many businesses are doing it right now - and don't know it.
⟶ Are you at risk?
SB 254 prohibits charging a customer an extra amount for paying with a debit card. It doesn't ban every pricing strategy - it bans one specific thing. The difference is where most of the risk hides.
SB 254 bans surcharging debit cards. Surcharging credit cards is not prohibited by this law - but only if debit is reliably excluded.
It reaches retail sellers broadly. If you sell to the public and accept debit cards, assume it applies to you.
Once in force, a violation carries a 30-day window to cure - but only if you catch it before a complaint does.
SB 254 creates a private right of action. A single customer can bring a claim for actual damages - no class action required.
Complaints go to the state, supported by the customer's own receipt showing the surcharge - which is exactly the evidence that triggers a report.
Penalties escalate rather than hit instantly - but the cure window only helps if you find the problem before a complaint does.
Surcharging debit already broke Visa and Mastercard rules - but enforcement was spotty, and plenty of businesses never heard a word. SB254 doesn't change what's prohibited; it changes who can act on it - the same surcharge now also opens you to customer lawsuits and state enforcement, not just network penalties.
They can cost the customer the same dollar - but only one stays legal once SB 254 takes effect. The difference is structure, not price.
Why it's a surcharge: there's a base price, and an extra amount is added at checkout for paying by card. When that fee can reach a debit card, it's exactly what the law bans.
Why it's legal: one posted price for everyone, and cash buyers get a discount off it. No extra amount is ever added for using a debit card.
Same $4 gap. One adds a fee to the card price; the other discounts the cash price. Whether yours is built - and disclosed - the legal way is exactly what the scorecard checks next.
SB 254 was authored by Senator Beth Mizell (R, District 12), who represents Washington, Tangipahoa, and parts of St. Tammany Parish and chairs the Senate Committee on Commerce, Consumer Protection, and International Affairs. It was framed as a consumer-protection measure, aligning Louisiana with the existing federal prohibition on debit-card surcharges under the Dodd-Frank Act.
Important: SB 254 applies only to debit card transactions. It does not change the rules for credit-card surcharges.
The takeaway: this is settled law with strong support across both parties - it is not expected to be repealed or rolled back. The practical question isn't whether the law will stand, but whether your payment setup is compliant before it takes effect on August 1, 2026.
SB254.net is maintained by a Certified Payments Professional with 20 years in Louisiana merchant services - reviewing processing statements, untangling surcharge and cash-discount programs, and helping local businesses understand what they're actually being charged. This guide reflects that hands-on reading of the law, not legal theory. The free compliance check is offered through ZeroPoint, my Louisiana payments firm.
Send us one piece of evidence about how you take card payments today. We review it and give you a straight verdict: you're exposed and here's why, you're probably fine, or you're in a gray area worth fixing. No cost, no obligation.
Anything you send is reviewed confidentially, used only to return your verdict, and never sold or shared. No statement is required just to see your scorecard rating.
Note: the Attorney General's enforcement rules are still being finalized. We track changes and update this resource - but for advice on your specific situation, consult a licensed Louisiana attorney.
