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.
Senate Bill 254 was signed into law on June 2, 2026 as Act 751. Same law, new name — here's what it means for your business.
⟶ Are you at risk?
Senate Bill 254 became Act 751 when Gov. Jeff Landry signed it on June 2, 2026 — same law, new name. (You'll still see it called "SB 254"; on the books it's Act 751, codified at La. R.S. 51:3081.) It 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.
Signed into law by Gov. Jeff Landry. Once in force, curing a violation means reimbursing every surcharged customer within 30 days of written notice.
SB 254 creates a private right of action. A single customer can bring a claim for actual damages - no class action required - for willful, repeated, or uncured violations.
The Attorney General must maintain a toll-free number and an online portal for reporting unlawful surcharges - and the customer's own receipt is the evidence. Defying an order costs up to $500 per violation, plus the AG's legal costs.
After a customer's written notice, you have 30 days to fix the violation and reimburse the surcharge to stop a private suit. It doesn't cover willful or repeated violations - and it doesn't stop the Attorney General.
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, and was signed into law by Governor Jeff Landry after passing the Senate unanimously and the House overwhelmingly.
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 - signed by the Governor, with strong support across both parties. The only question left is whether your payment setup is compliant before it takes effect on August 1, 2026.
Act751.com (formerly 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.
"This closes that gap and shows merchants that Louisiana is serious about consumer protection."
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.
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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.
