Provides relative to surcharges for debit card use. (8/1/26)

Senate Bill 254 enacts two new sections of the Louisiana Revised Statutes, R.S. 9:3518.5 and 3518.6, to prohibit retail businesses from imposing surcharges on customers who use debit cards instead of alternative payment methods such as cash, checks, or credit cards. The statute defines key terms including cardholder, debit card, retail business, and surcharge, and establishes a straightforward prohibition: retail businesses cannot charge any additional fee at the time of transaction to customers using debit cards. The law creates a direct private right of action, making any retail business that violates this provision liable to the affected cardholder for damages, expenses, and attorney fees.

The legislation affects all retail businesses operating in Louisiana and all consumers who use debit cards for purchases. Retail businesses face civil penalties of up to five hundred dollars per violation, and those who fail to cure violations or repeat violations after receiving notice from the attorney general become subject to both court-imposed penalties and attorney fee awards. Consumers benefit from a new complaint mechanism through a toll-free telephone number and electronic reporting system that the attorney general must establish and maintain, allowing them to report unlawful surcharges with details including the business name, transaction date and amount, surcharge amount, and supporting documentation. Additionally, affected consumers can pursue civil actions directly against violating businesses to recover their costs.

This legislation operates within Louisiana's consumer protection framework and sits alongside existing debit and credit card regulations in the Louisiana Revised Statutes Title 9 provisions. The law establishes an enforcement structure that provides a forty-five-day cure period before the attorney general may initiate enforcement action, encouraging compliance while maintaining deterrence through civil penalties and the ability to pursue repeat or non-curing violators. The statute requires that funds collected from fines and penalties be dedicated to consumer protection and education efforts by the attorney general, creating a reinvestment mechanism. The effective date of August 1, 2026 provides retail businesses a transition period to modify any existing pricing structures or systems that include debit card surcharges.