This is the single most important distinction in the whole law, and it is the one that trips up businesses that are genuinely trying to do the right thing. Get the structure right and you are on the safe side. Get it wrong - even with good intentions - and a program meant to be legal can be a prohibited surcharge in substance.
The difference is the starting point
A surcharge starts from a base price and adds an extra amount at checkout for paying by card. A cash discount starts from one posted price that everyone sees and takes an amount off for paying cash. Same gap, opposite direction.
SB 254 asks one question: is an additional amount imposed for using a debit card? In a surcharge, yes. In a true cash discount, no - nothing extra is added; cash simply pays less. The label on your sign does not decide it. Calling a surcharge a "service fee" or "non-cash adjustment" does not move it to the legal side; the structure does. You can see both modeled side by side in the surcharge vs. cash discount comparison on the homepage.
Why "same dollar" is not the same risk
Picture a $4 difference on a $100 item. Add a $4 card fee to the $100 and a debit customer pays $104 - that is a surcharge. Post the price at $104 for everyone and give cash buyers $4 off - that same debit customer still pays $104, but now it is a discount. Identical to the customer; opposite under the law.
A note on timing: The line between a legal cash discount and a prohibited surcharge is structural, and how your equipment treats debit can blur it. The law took effect August 1, 2026; the Attorney General has not yet published Act 751-specific enforcement guidance, so some operational details may still change. Everything here reflects the law as written - for advice on your specific situation, consult a qualified professional, and confirm rather than assume.
Where it gets subtle
A genuine cash discount has to be built and disclosed correctly: one posted price, consistent signage and receipts, and a difference that reflects your real cost of accepting cards rather than a markup. Done wrong, a "discount" can be a surcharge in disguise - and it can run afoul of card-network rules at the same time. Whether yours holds up is exactly the kind of thing worth confirming, not assuming. The Risk Scorecard gives you a first read, and a free ZeroPoint check verifies the structure against your actual receipts and statement - the difference between "probably fine" and "confirmed fine" now that the law is in force.
Are credit card surcharges still legal in Louisiana?
Yes. Act 751 is a debit card surcharge ban - it does not prohibit surcharging credit cards. Louisiana's debit card surcharge law draws the line at the card type, not at surcharging itself. But "credit surcharges are still allowed" comes with two serious catches:
Catch one: the surcharge must never touch a debit card. A "credit-card surcharge" that also lands on debit - because the terminal can't reliably tell the two apart - is exactly what the law bans. A debit card is a debit card whether the customer runs it as PIN or signature; running it "as credit" does not make it a credit card. If your equipment can't verifiably exclude debit, your legal credit surcharge is an illegal debit surcharge waiting to happen.
Catch two: card-network rules apply on top of state law. Visa and Mastercard have their own surcharge programs - notice requirements, disclosure at the point of sale and on the receipt, and caps tied to your actual cost of acceptance. Those rules existed before Act 751 and are enforced separately from it. Complying with Louisiana law does not exempt you from them.
This is why many Louisiana businesses respond to Act 751 not by narrowing a surcharge to credit-only, but by restructuring to a cash discount program - one posted price, a discount for cash - which avoids the debit/credit distinction entirely.
Quick answers
What is the difference between a cash discount and a surcharge?
The starting point. A surcharge adds an extra amount to a base price when the customer pays by card; a cash discount subtracts from one posted price when the customer pays cash. Under Louisiana's debit card surcharge law, the surcharge version is illegal the moment it reaches a debit card - the discount version is not.
Does renaming a card fee a "service fee" or "non-cash adjustment" make it legal?
No. The label on the receipt doesn't decide anything - the structure does. If an extra amount is imposed for paying with a debit card, it's a prohibited surcharge no matter what it's called.
Are credit card surcharges banned by Act 751?
No - the ban covers debit cards only. A credit-card surcharge remains lawful under this statute if debit cards are reliably and verifiably excluded, and card-network rules on disclosure and caps are still in force on top of the state law.