Louisiana Prohibits Debit Card Surcharges Beginning August 1, 2026

Key Takeaways

• Louisiana bans assessment of additional fees on debit cards effective August 1, 2026. Retail businesses may not charge consumers an additional fee for using a debit card, creating new compliance obligations for merchants operating in the state.
• The law creates both private litigation and regulatory enforcement risk. Consumers may sue after providing notice and an opportunity to cure, while the Louisiana Attorney General may seek civil penalties, injunctive relief, and other remedies.
• Convenience fee programs warrant immediate review. Businesses that assess fees across multiple payment methods used in a given channel, including debit cards, may wish to evaluate such programs for compliance in Louisiana in light of the new law.

Effective August 1, 2026, Louisiana law will change to prohibit retail businesses from assessing fees to cardholders who elect to pay with debit cards, a move that could affect businesses that have implemented “convenience fee” programs within the state. Previously, Louisiana did not regulate the assessment of fees on payment cards. However, in February 2026, its legislature began considering SB254, which proposed restricting the assessment of “surcharges” on debit cards. The legislature passed that law on May 29, 2026, and the governor signed it on June 2, 2026. SB254 will eventually be codified as Louisiana Revised Statute 51:3081-3082, entitled “Debit Card Surcharge.”

What Does the Law Say?

Those familiar with Visa and Mastercard’s rules may recognize “surcharging” as a payments industry term of art which refers exclusively to the assessment of fees on credit cards — not debit. However, the term carries a different meaning under SB254. That law defines “surcharge” as “any additional amount of money imposed at the time of the transaction by a retail business that increases the charge to the cardholder for the privilege of using a debit card.” Using that definition, SB254 states that:

In a sale of goods or services, a retail business shall not impose a surcharge on a cardholder who uses a debit card instead of cash, check, credit card, or any other similar means of payment.

How Will the Law Be Enforced?

The new law empowers aggrieved cardholders to bring a private lawsuit against offending retail businesses, but only after providing written notice to the retail business and thirty days for the business to reimburse the surcharge. If the business reimburses the surcharge, the cardholder will not have the right to file suit. Cardholders may also complain to the state attorney general, who may bring a civil action, seek injunctive relief, or pursue an administrative action, which includes recovery of civil penalties.

Impact on Merchants, Convenience Fee Programs, and Payment Acceptance Practices

Generally speaking, the new law is unlikely to affect existing surcharging programs. Because Visa and Mastercard rules define surcharges as assessments on credit cards only — not debit cards — many existing surcharging programs already have protocols in place to block surcharges on debit cards. However, to industry participants running what are known as “convenience fee” programs, a program recognized under Visa’s rules to permit the assessment of fees on all payments forms presented in a particular, card-not-present channel, Louisiana’s new law could require reevaluation of such programs to ensure debit cards are not subject to charges that would be unlawful under SB254.

For further guidance on related matters, please contact AGG Payment Systems & Fintech industry team co-chair Theresa Kananen.