(June 23, 2026) – A new Louisiana law taking effect August 1, 2026, will prohibit certain surcharges on debit card transactions.
Senate Bill 254, signed into law as Act 751 of the 2026 Regular Session, prohibits a retail business from imposing a surcharge on a cardholder who elects to use a debit card in lieu of payment by cash, check, credit card, or similar means.
The legislation defines a surcharge as an additional amount imposed at the time of a transaction that increases the charge to a cardholder for the privilege of using a debit card.
While the law uses the term “retail business,” its definition extends beyond traditional retail stores. Senate Bill 254 defines a retail business as a person or entity engaged in the sale of goods or services.
Under the law, a cardholder who believes a prohibited surcharge has been imposed must provide written notice to the retail business. The business has thirty days after receiving the notice to reimburse the surcharge.
The legislation also provides for enforcement by the Louisiana Attorney General. The attorney general may investigate complaints and pursue remedies authorized by law.
The law applies specifically to debit card transactions. Senate Bill 254 does not prohibit surcharges on credit card transactions.
Governor Jeff Landry signed Senate Bill 254 into law on June 2, 2026. The law becomes effective August 1, 2026.
The full text of Senate Bill 254 and related legislative records are available through the Louisiana Legislature.
