Louisiana Debit Card Surcharge Law: Act 751 Compliance Guide for Businesses

If you own a business in Louisiana and charge customers extra for using a debit card, you need to stop. Act 751 has been in effect since August 1, 2026, and the penalties are real.

What Act 751 Actually Says

Act 751 (Senate Bill 254) adds a new chapter to Louisiana law, R.S. 51:3081 and 3082. Governor Jeff Landry signed the bill into law on June 2, 2026, and it took effect August 1, 2026. The rule is simple: a retail business cannot add a surcharge to a transaction because the customer paid with a debit card instead of cash, check, credit card, or any other payment method.

The law defines a surcharge as any extra amount tacked onto the sale price at the time of the transaction specifically because the customer used a debit card. If you're adding a "convenience fee" or a "card fee" and it applies to debit transactions, you're likely in violation.

This is separate from cash discounting or credit card surcharging done under a properly structured, compliant program. Act 751 targets debit cards specifically. Credit card surcharge programs are governed by different rules and are not covered by this law.

Card brands like Visa and Mastercard already prohibited surcharging debit cards under their own network rules, so this isn't a brand new concept. What's changed is that Louisiana has now made it state law, which means enforcement is no longer just up to the card brands. Customers can sue, and the Attorney General can act.

What Happens If You Get It Wrong

The law gives customers a way to hold businesses accountable, but it's not designed to trap you on a first mistake.

Before a customer can sue you, they have to send written notice of the alleged violation. If you fix the problem and refund the surcharge within 30 days of that notice, no lawsuit can move forward. A private lawsuit only becomes possible if the violation was willful, repeated, or you failed to cure it within the 30-day window.

The Attorney General has separate enforcement power. The AG can bring a civil action directly against a business. If the AG wins, the court can order the business to pay attorney fees, court costs, and investigative costs on top of any penalty. Violating a court or administrative order carries a civil penalty of up to $500 per violation.

There's also a reporting system. The Attorney General runs a Consumer Protection Hotline at 1-800-351-4889, along with an online complaint system, where customers can report unlawful surcharges. A complete complaint includes your business name and address, the date and amount of the transaction, the surcharge amount, and a receipt or invoice showing it.

Why This Matters Right Now

Point-of-sale systems and processing agreements often have surcharge programs baked in by default, sometimes without the business owner realizing debit cards are included. If your system isn't set up to correctly detect and exclude debit transactions from a surcharge, you're exposed the moment a customer notices and complains.

This often isn't the merchant's fault. Because enforcement of the card brand rules was inconsistent for years, a lot of processing companies never bothered updating their systems to properly separate debit from credit. Merchants were told they were running a compliant program when they weren't, simply because their processor hadn't taken the rules seriously. That's exactly why it matters to work with a processor that treats compliance as a priority, not an afterthought.

This is exactly the kind of compliance gap that turns into a real problem fast. A written complaint starts a 30-day clock. Miss it, and you've opened the door to a lawsuit and possible AG action.

Act 751 puts liability on the retail business, not the processor or company that set up the equipment. If your terminal is surcharging debit, that exposure is yours, even if you didn't configure it and didn't know it was happening.

How to Protect Your Business

• Make sure whoever handles your payment processing uses terminal and POS technology that correctly detects debit transactions, including PIN-less debit swipes and taps, and excludes them from any surcharge program

• Pull a recent processing statement and check it yourself. It will show whether a surcharge is being applied, at what rate, and through which processor, so you don't have to guess whether you're exposed

• Have your cash discount program reviewed to confirm it's structured to meet both card brand rules and Louisiana law, so you're covered on every front. To stay compliant, the price at checkout and on the receipt has to match what's posted on your shelf, menu, or wherever your pricing is displayed. This is the only way to give a true cash discount

• Keep documentation of your compliance steps in case a complaint ever comes in

• Post proper signage at the register and point of sale disclosing your pricing program, as required under card brand rules and Louisiana law

• Learn more about why Mandeville merchants are switching to cash discount pricing.

If you're not sure whether your current setup is compliant, that uncertainty is the risk. Act 751 doesn't require intent to violate the law, just a surcharge on a debit transaction.

Frequently Asked Questions

Does Act 751 apply to tips or convenience fees? It applies to any extra amount added to a transaction because the customer used a debit card, regardless of what it's called. If a "convenience fee," a "card fee," or a line item like a "non-cash adjustment" only shows up on debit transactions, it falls under this law. Relabeling the fee doesn't change what it is.

What if my terminal shows debit as "credit" when no PIN is entered? Some debit cards can be run as signature debit or tap-to-pay without a PIN, but they're still debit cards under the law. Your terminal needs to correctly identify them as debit and exclude them from any surcharge, regardless of how the transaction is routed.

Does this affect my credit card surcharge program? No. Act 751 only addresses debit card surcharges. Credit card surcharging is a separate program governed by different card brand and state rules, and a compliant credit surcharge program is unaffected by this law.

Is Act 751 already in effect? Yes. Governor Jeff Landry signed it into law on June 2, 2026, and it took effect August 1, 2026.

Get Your Processing Reviewed

This article is for general information and isn't legal advice. If you have questions about how Act 751 applies to your specific business, talk to an attorney.

RGS Payments helps Louisiana businesses set up compliant payment processing, including cash discount and surcharge programs that follow the law from day one. If you want your setup checked against Act 751, call 985-334-9818.