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 Attorney General's enforcement rules are still being finalized, so some operational details may 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 August 1.