Louisiana bans retailer fees for debit card use as new consumer protection law takes effect

Effective Saturday, Senate Bill 254 makes it unlawful for Louisiana retailers to impose a surcharge on customers who use debit cards, though credit-card fees remain permissible. The legislation defines a surcharge as any additional amount that raises the cost of a debit-card transaction. Consumers must first give written notice of the alleged violation; if the merchant reimburses the fee and corrects the issue within 30 days, a lawsuit is barred.

Private suits are limited to willful, repeated, or unremedied violations, while the Louisiana attorney general may bring civil actions, recover reasonable attorney fees, court and investigative costs, and assess civil penalties of up to $500 per breach, with proceeds supporting consumer-protection initiatives. The attorney general’s office must also establish a toll-free number and an electronic portal for consumers to report unlawful surcharges, requiring details such as business name, transaction date, surcharge amount and supporting receipt.