Cash discounting and dual pricing have become popular ways for businesses to offset card-processing costs, so the first question many Louisiana owners ask about SB 254 is whether their program is about to become illegal. The reassuring answer: a true cash discount is exactly the kind of pricing the law leaves alone, because nothing extra is imposed for using a card - cash simply pays less.
What makes a cash discount genuine
The hallmark is a single posted price that everyone sees, with a discount for paying cash. The same price appears on the menu, the shelf, and the receipt; cash buyers get a reduction off it. No separate "card fee" line added on top. If a card customer instead sees a base price with an extra amount tacked on, that is a surcharge wearing a discount's clothes - and on debit, it is prohibited. (The surcharge vs. cash discount guide breaks that distinction down.)
There is a second condition that comes from card-network rules rather than SB 254: a business generally cannot profit from the difference. The gap between cash and card pricing should reflect your actual cost of accepting cards, with proper disclosure - not act as a markup.
Where good intentions go wrong
The most common failure is not a business trying to cheat - it is a program a processor set up, or one copied from another shop, that is labeled a discount but structured as a surcharge, or that quietly applies to debit anyway. "My processor set it up" is the single most common reason a compliant-looking program is not actually compliant.
A note on timing: A cash-discount program can satisfy SB 254 and still need to line up with card-network rules, and the enforcement details for both continue to settle. 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.
How to know yours holds up
Because the line between a legal cash discount and an illegal surcharge is structural - and partly hidden in how your equipment handles debit - it is worth confirming rather than assuming. The Risk Scorecard walks the cash-discount path in a few questions, and a free ZeroPoint check verifies the structure and disclosure against your real receipts and statement, so "probably fine" becomes "confirmed fine" before a complaint decides it for you.