On June 2, Louisiana Governor Jeff Landry signed SB 254 into law as Act 751, prohibiting retail businesses from imposing surcharges on customers who pay with a debit card. The law takes effect August 1, 2026.
The law enacts a new Chapter 52 of Title 51 of the Louisiana Revised Statutes (R.S. 51:3081 and 3082). It defines a surcharge as any additional amount imposed at the time of a transaction that increases the charge to a cardholder for the privilege of using a debit card, and prohibits retail businesses from imposing such charges when a customer chooses to pay by debit card rather than cash, check, credit card, or other similar means of payment.
The law establishes a pre-suit notice requirement: a cardholder must provide written notice to the retail business before filing a civil action. If the business cures the violation and reimburses the cardholder within 30 days of receiving that notice, no private right of action arises. Civil suits are limited to willful violations, repeated violations, or violations not timely cured. The Louisiana Attorney General may also bring civil enforcement actions, and courts may award attorney fees, court costs, and investigative costs. Civil penalties of up to $500 per violation may be imposed. The Attorney General is required to establish a toll-free telephone number and electronic reporting system for consumers to report alleged violations.