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SB 254

CREDIT: Provides relative to surcharges for debit card use. (8/1/26)

2026 Regular Session Introduced by Tehmi Chassion and 1 co-sponsor

Louisiana bans debit card surcharges by retailers and creates enforcement, penalties up to $500 per violation, and a consumer reporting system.

Effective date 8/1/2026.
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WeVote Research Nonpartisan
Bill Summary · SB 254

Bill overview

  • Bill: SB 254 (Louisiana, 2026 Regular Session)
  • Sponsor: Sen. Beth Mizell
  • Title: CREDIT: Provides relative to surcharges for debit card use
  • Effective date: August 1, 2026
  • Status: Enacted/reauthorized as prospective law; adds new Chapter 52 of Title 51 (R.S. 51:3081 and 3082)

Main purpose and intent

SB 254 establishes rules prohibiting debit card surcharges by retail businesses and creates a framework for enforcement, civil penalties, reporting, and consumer protections. The core aim is to prevent merchants from imposing extra fees specifically for debit card payments and to provide a mechanism for cardholders to report violations and obtain relief.

Key provisions and changes

  • Definitions (Chapter 52, newly added):

    • Cardholder: The person named on the face of a debit card, including their employees, agents, or authorized users.
    • Debit card: A card or device that debits funds directly from the cardholder’s deposit account.
    • Retail business: Any entity selling goods or services.
    • Surcharge: Any additional amount charged at the time of the transaction that increases the cardholder’s cost for using a debit card.

  • Prohibition on debit card surcharges:

    • Retail businesses may not impose a surcharge on a cardholder who uses a debit card instead of other payment methods (cash, check, credit card, etc.).

  • Civil liability for violators:

    • A retail business that imposes such a surcharge is liable to the affected cardholder for damages or expenses, including attorney fees.

  • Enforcement and penalties:

    • The Attorney General may bring civil actions to enforce the prohibition.
    • Civil penalties: Up to $500 for each violation, applicable to administrative or court orders enforcing the prohibition.
    • Fines collected are to be used to promote consumer protection and education.

  • Consumer reporting and complaint process:

    • The Attorney General must establish and maintain a toll-free helpline and an electronic reporting system for cardholders to report unlawful debit card surcharges.
    • Complaints must include: name and address of the retail business, date and transaction amount, surcharge amount, and supporting documentation (receipts, invoices).

  • Administrative amendments (as adopted by the Senate):

    • Initial bill included a pre-enforcement cure/notice requirement; Senate changes removed the requirement that the AG provide written notice and an opportunity to cure before enforcement action.

Who/what would be affected

  • Retail businesses selling goods or services in Louisiana that attempt to levy surcharges specifically for debit card payments.
  • Cardholders who use debit cards and may encounter unlawful surcharges.
  • The Louisiana Attorney General, which would enforce the prohibition, handle complaints, and collect penalties.

Procedural and timeline aspects

  • Effective date: August 1, 2026.
  • Enforcement: Civil actions by the Attorney General; penalties up to $500 per violation.
  • Reporting: Toll-free number and electronic system established by AG for complaints.
  • Remedies: Civil damages to cardholders, including attorney fees, and use of penalties for consumer protection/education.

Notable amendments

  • Committee amendments (Commerce, Consumer Protection, and International Affairs) removed the cure-notice requirement and opportunity-to-cure before enforcement.
  • Senate floor amendments and engrossed versions contained only technical changes; the core prohibition and enforcement framework remain intact.

If you’d like, I can provide a one-page explainer targeted to merchants, or a quick-reference checklist for consumers on how to report suspected surcharges.

Compiled from official sources — confirm details with the bill’s official record.

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