Louisiana shoppers paying with debit cards got a new shield Saturday: Retail businesses may no longer add a surcharge for the privilege of using one. That means the extra “card fee” appearing on a receipt could now be more than annoying — it could violate state law.
Act 751, formerly Senate Bill 254, took effect Saturday after being signed by Gov. Jeff Landry on June 2, according to the Louisiana Legislature. The law covers businesses selling goods or services and defines a surcharge as an additional amount imposed during a transaction because a customer uses a debit card.
The new rule is aimed specifically at debit cards, not every type of plastic. As reported by New Orleans CityBusiness, the measure does not prohibit surcharges on credit card transactions, meaning retailers will need to correctly distinguish between the two payment types at checkout.
What Louisiana Shoppers Should Keep
If a debit-card surcharge shows up anyway, consumers should hold on to the receipt or invoice and record the business’s name and address, transaction date, purchase amount and surcharge amount. The law requires the Louisiana attorney general to establish both a toll-free telephone number and an electronic reporting system for complaints, with supporting documentation required.
The state attorney general’s existing consumer-protection system currently accepts disputes involving alleged unfair or deceptive business practices and lists a consumer hotline at 1-800-351-4889, according to the Louisiana Office of the Attorney General. The new debit-surcharge reporting process is expected to give cardholders a more specific route for flagging these fees.
Businesses Get 30 Days To Make Things Right
The law does not send every mistaken surcharge straight into court. A customer must first provide written notice, and the retailer has 30 days to stop the practice and reimburse the fee; private lawsuits are limited to willful or repeated violations, or cases that are not corrected during that window, New Orleans CityBusiness reports.
Cardholders may recover actual damages caused by a violation, while the attorney general can bring a civil action against a business. Under the enacted law, a business that violates an administrative or court order may face civil penalties of up to $500 per violation, with collected penalties directed toward consumer-protection and education efforts, according to the enacted law.
A New Checkout Rule For Louisiana Retailers
For shoppers, the practical change is simple: A debit card should no longer cost more merely because it is a debit card. For retailers, the less-simple part is making sure point-of-sale systems, receipts and staff practices do not accidentally tack the forbidden fee onto a transaction.
