Local Merchant Services · Lafayette, Louisiana · 337.366.8550
New Louisiana Law · In Effect Since Aug 1, 2026

Louisiana's New Debit Card Law, Explained.

As of August 1, 2026, Louisiana businesses can no longer add a fee when a customer pays with a debit card. If your terminal charges a card fee, this probably affects you — and the fix is usually a simple settings change. Here's the law in plain English, plus a free way to make sure you're set.

⟡ Plain English — no legal jargon 📍 From your local Lafayette payments team
Act 751 at a glance
📅
In effect since Aug 1, 2026. Signed June 2, 2026; formerly Senate Bill 254.
💳
Debit cards only. Credit-card surcharges aren't restricted by this law.
Cash discounts still work. One posted price with a discount for cash is fine.
🔧
Usually an easy fix. Most issues come down to how a terminal was configured.

What Changed On August 1

Act 751 — introduced as Senate Bill 254 and now codified at La. R.S. 51:3081 — does one specific thing: it ends the practice of adding an extra charge when a customer pays with a debit card. Everything else about how you price and take payments stays the same.

The Rule

No fees on debit payments

A customer paying with a debit card pays the posted price — no card fee, service fee, or "non-cash adjustment" added on top.

Who It Covers

Most Louisiana businesses

The law covers retail sellers broadly — restaurants, shops, salons, and service businesses. If you sell to the public and take debit cards, plan on it applying to you.

What Didn't Change

Everything else

Single pricing, true cash discounts, and credit-card surcharge programs (with debit properly excluded) all continue exactly as before.

What Works Now — And What Doesn't

Still perfectly fine

  • One posted price for everyone, however they pay.
  • A true cash discount off a single posted price.
  • A credit-card surcharge — as long as your system reliably keeps it off debit.

Ended by Act 751

  • A fee added at checkout for paying with a debit card.
  • A "credit-card fee" that also lands on debit because the terminal can't tell the two apart.
  • The same fee under a different label — "service fee," "convenience fee," "non-cash adjustment" — when it reaches debit.
§ Want the source? Read the bill itself. The enrolled text of SB 254 from the Louisiana Legislature — about three pages, very readable. View the bill →

Two Ways to Offset Card Costs — One Still Works

Plenty of Louisiana businesses offset processing costs, and you still can. What matters now is how the math is structured on the receipt.

Cash discount

Works
Posted price (everyone)$51.75
− Cash discount (3.5%)− $1.75
Cash customer pays$50.00

Why it works: there's one posted price, and paying cash earns a discount off it. Nothing extra is ever added for using a debit card — so Act 751 never comes into play.

Card fee on debit

Ended
Item price$50.00
+ Card fee (3.5%)+ $1.75
Debit customer pays$51.75

Why it doesn't: this starts from a base price and adds an amount at checkout for paying by card. When that added amount can reach a debit card, it's the structure Act 751 ended.

The customer can end up paying the same either way — the difference is whether the cash price is a discount or the card price is an add-on. If you like your current program, it can usually be restructured the compliant way without changing your margins.

Why Well-Run Businesses End Up Out of Step

This usually isn't anyone being sneaky. Two quirks of how card payments work catch people out.

01

Debit doesn't always look like debit

A debit card can run as PIN debit, or route through a credit network as "signature debit" — just a tap or swipe, no PIN. It looks like credit at the counter, but legally it's still a debit card, however it's processed.

02

Terminals apply fees to everything

Many surcharge programs were set up by a processor years ago, configured to add the fee to every card. If nobody ever told the terminal to treat debit differently, it doesn't — and the owner rarely knows.

If this might be you, it's very fixable.

In most cases it's a configuration change or a switch to a compliant cash-discount structure — often done the same day, with no change to your effective margins. That's the kind of adjustment we handle for Lafayette businesses all the time.

How the Law Handles Mistakes

Act 751 was written with a built-in path to make things right. Here's how it works, factually and without the drama.

The Cure Window

30 days to make it right

If a customer sends written notice, a business has 30 days to correct the issue and refund the surcharge. Doing so resolves that private claim — the law rewards fixing problems promptly.

Consumer Complaints

The AG takes reports

Customers can raise unresolved issues with the Louisiana Attorney General's Consumer Protection Hotline (1-800-351-4889) or its online form. Continued violations of an order can carry civil penalties of up to $500 each.

Private Claims

For uncured cases

Customers can pursue actual damages for violations that are willful, repeated, or left uncured. In practice: fix issues when you learn about them, and this provision stays theoretical.

The takeaway isn't alarm — it's that checking your setup once beats finding out from a customer letter. A five-minute look at a statement or receipt usually settles it.

Does This Law Affect Your Business?

Four questions. About a minute.

Answer based on how you take card payments today and we'll tell you where you likely stand — and what, if anything, is worth doing next. Nothing is stored or submitted.

No email needed to see your result

Question 1 of 4

When someone pays by card, is anything added on top of your posted price?

Question 2 of 4

Does that fee apply when the card is a debit card?

Question 3 of 4

Have you tested it — run a real debit card and checked the receipt?

Question 4 of 4

Who originally set up your fee or discount program?

Worth fixing soon

Your setup likely needs an adjustment.

It sounds like a fee is reaching debit cards, which is what Act 751 ended. The good news: this is normally a configuration change or a restructure to a compliant cash discount — quick, and usually neutral to your margins. We'll confirm exactly what's happening from one statement, free.

Get my free review →
Worth verifying

You're probably fine — but confirm it.

Your program may be set up correctly, but "the processor said so" isn't the same as seeing it on a receipt. One test transaction on a debit card, plus a glance at your statement, settles it for good. We're happy to do that look for you, free.

Verify it for free →
Looking good

Your structure lines up with the law.

Single pricing or a true cash discount keeps you clear of Act 751. If you'd ever like a second set of eyes on your processing costs — that's our specialty — our Lafayette team reviews statements free, no strings.

Get a free statement review →

Where the Law Came From

The bill was authored by Senator Beth Mizell of District 12, who chairs the Senate Committee on Commerce, Consumer Protection, and International Affairs. It was positioned as a consumer-protection measure bringing Louisiana in line with the federal Dodd-Frank framework on debit transactions, and it drew support from both parties — passing the Senate without a single no vote before Governor Jeff Landry signed it on June 2, 2026.

i

Scope check: Act 751 is about debit cards only. It doesn't change the rules for credit-card surcharges or cash discounts.

In other words: this is settled law, not a proposal to watch. The practical question for a business owner is simply whether your card processing and POS setup reflect it — and that's a five-minute check.

Read the full bill text →

Want to Be Sure? We'll Take a Look — Free.

We're HD Processing, a payments company at 1027 Johnston St here in Lafayette. Show us one piece of how you take cards today and we'll tell you plainly whether Act 751 touches your setup — and if it does, what the fix looks like. No cost, no contract, no pressure either way.

1
A recent processing statement Most Useful Shows whether a surcharge program is active, how it's configured, and what you're really paying. (Same review as our hidden fees guide.)
2
A photo of your checkout signage or a receipt Often enough to tell how a card fee is structured and where it lands.
3
A quick phone call Five minutes on your setup. Call 337-366-8550 — a real person here in Lafayette answers.

🔒 Whatever you share is reviewed confidentially, used only to answer your question, and never sold or shared.

Request Your Free Review

Tell us where to reach you and we'll follow up with the easiest way to send a statement, a photo, or set up a quick call.

Free, no obligation. Your details are used only to get back to you about your review.

Got it — thanks!

Check your inbox. We'll send the simple next step, usually within one business day.

Act 751 Questions, Answered Simply

Can a Louisiana business charge a fee for debit card payments?+
Not anymore. Act 751 (formerly Senate Bill 254) took effect August 1, 2026 and ended extra charges on debit card payments. Credit-card surcharges and true cash discounts aren't affected by this law.
Does the law apply to my business?+
If you sell to the public in Louisiana and accept debit cards, plan on yes — restaurants, retail, salons, and service businesses are all covered. The more useful question is whether your current card setup lines up with it, which the 60-second self-check above will tell you.
Are cash discounts still allowed?+
Yes. One posted price for everyone, with a discount off that price for cash, remains completely legal. What ended is the reverse: a base price with a fee added at checkout that can land on debit. Same math, different structure — see the side-by-side comparison above.
Can I still surcharge credit cards?+
Yes — Act 751 doesn't restrict credit-card surcharges. The practical requirement is that your system genuinely excludes debit. Because debit cards often route through credit networks with just a tap or swipe, it's worth verifying with a real debit-card test rather than assuming.
What if I've been charging debit fees without realizing it?+
You're not alone — most affected businesses had no idea, because a processor configured the program. The law gives you a path: after a customer's written notice, you have 30 days to fix the issue and refund the surcharge, which resolves that claim. Better still is fixing it before any notice arrives — usually a quick configuration change or a restructure to a compliant cash discount.
How do I check what my terminal actually does?+
Two ways: run a small purchase on a real debit card and compare the receipt to your posted price, and look at your merchant statement, which shows whether a surcharge program is active and how it's set up. If you'd rather not decode a statement yourself, we'll review it free.