SB 254 - Frequently Asked Questions

Louisiana Senate Bill 254 is a state law that prohibits charging a customer an extra amount for paying with a debit card. It was framed as a consumer-protection measure, aligning Louisiana with the existing federal prohibition on debit-card surcharges under the Dodd-Frank Act. It takes effect August 1, 2026.

August 1, 2026. As of the last update to this resource, the bill has passed both chambers of the Louisiana Legislature (Senate 35-0, House 83-14) and is awaiting the Governor's signature. We update this page as the bill's status changes.

Almost certainly, if you sell to the public in Louisiana and accept debit cards. Restaurants, retail shops, salons, and service businesses are all in scope - the law reaches retail sellers broadly, so the safest assumption is that it applies to you. The real question isn't whether it applies, but whether the way you take card payments complies. The Risk Scorecard walks you through it in four questions.

Two channels. First, a private right of action - a customer can sue for actual damages, with no class action required. Second, complaints can be reported to the state, supported by the customer's own receipt showing the surcharge. The Attorney General's enforcement rules are still being finalized; we track changes and update this resource as they are published.

Not after August 1, 2026. SB 254 prohibits charging a customer an extra amount for paying with a debit card. Credit-card surcharging is not banned by this law, and genuine cash discounts remain legal - the line the law draws is debit.

No. SB 254 targets debit cards. Surcharging credit cards is not prohibited by this law - but only if debit is reliably and verifiably excluded. The common trap is a "credit-only" surcharge that the point-of-sale system can't actually keep off debit, so debit gets charged anyway.

Yes - a genuine cash discount is allowed. The key is structure: there must be one posted price everyone sees, with cash buyers getting a discount off it. That's different from a base price with a fee added for paying by card, which is a surcharge in substance even if it's labeled a discount.

The structure controls, not the label. 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. They can cost the customer the same dollar, but only the cash-discount structure stays legal once SB 254 takes effect. See the side-by-side comparison on the homepage.

Not to the law. A debit card can be processed as PIN debit or routed as signature debit through a credit network (often just a swipe or tap, no PIN) - but it pulls from a deposit account either way, so it's a debit card under SB 254 regardless of how it's run. The trap is point-of-sale systems that can't tell debit from credit and so can't reliably exclude debit from a "credit-only" surcharge.

A private right of action lets a customer sue for actual damages with no class action required, and complaints can be reported to the state, supported by the customer's receipt showing the surcharge. There is a 30-day window to cure a violation, and penalties escalate rather than hit instantly - but the cure window only helps if you find the problem before a complaint does. The Attorney General's enforcement rules are still being finalized.

In concept, it's a period to correct a violation before penalties escalate. The practical catch is that it only protects you if you identify and fix the problem first - it isn't a safety net that activates on its own once a customer complains. That's why the goal is to confirm compliance before August 1, not after. The exact mechanics depend on the Attorney General's enforcement rules, which are still being finalized.

Yes. The law applies to the retail business, not the company that configured your equipment. If your terminal is surcharging debit, that's your exposure - even if you didn't set it up and didn't know. "My processor handles that" is the most common way a compliant-looking program quietly charges debit, and it isn't a defense.

The fastest tell is your merchant processing statement - it shows whether you're surcharging, at what rate, and through which processor. Take the Risk Scorecard for an instant read, or request a free compliance check to have it confirmed against the text of the law.

At a concept level: confirm how you currently take card payments, and confirm that debit is never charged an extra amount - no matter how a debit card is run. If you can't confirm that, treat it as worth checking before the deadline rather than after a complaint. Because the Attorney General's enforcement rules are still being finalized and every setup differs, consult a qualified professional for advice specific to your business.