Effective August 1, 2026, Louisiana businesses need to take a closer look at how they process debit-card payments. Act 751 of the 2026 Regular Legislative Session, formerly Senate Bill 254, prohibits a retail business from imposing a surcharge on a customer for using a debit card to purchase goods or services. For LLSSA members, this is an important compliance issue because the law broadly defines a retail business as a person or entity engaged in the sale of goods or services.

That means life safety and property protection companies should review how customers are charged when paying invoices, service calls, installation charges, monitoring fees, equipment purchases, deposits, or other charges by debit card. A company may not think of itself as a traditional “retailer,” but if it sells goods or services and accepts debit-card payments, the language of Act 751 may apply.

One of the biggest concerns may be payment-processing systems that were configured long before the new law took effect. Some processors and point-of-sale systems automatically add charges identified as a service fee, convenience fee, non-cash adjustment, or similar charge. A business owner may not have intentionally chosen to surcharge debit-card users, but an existing payment configuration could nevertheless result in an additional amount being imposed when a customer uses a debit card.

The law defines a debit card as a card or other payment device that takes funds directly from the cardholder’s deposit account. This distinction is important. Businesses should not assume that choosing “credit” at a terminal automatically turns a debit card into a credit card. The key question under Act 751 is whether the payment device debits funds directly from the customer's deposit account.

LLSSA members should therefore review more than the wording displayed on their payment terminals. Look at recent customer receipts and invoices and determine whether an additional fee is being added when a debit card is used. It may also be worthwhile to conduct a small test transaction using a debit card and compare the final amount charged with the original invoice or sale amount. Companies using online payment portals or recurring payment systems should review those systems as well.

Act 751 also establishes protections and enforcement procedures when a violation occurs. Before bringing a private civil action, a cardholder must provide the business with written notice of the alleged violation. If the business corrects the violation and reimburses the cardholder for the surcharge within 30 days after receiving the written notice, no private right of action arises from that alleged violation. The private right of action applies to willful or repeated violations or violations that are not corrected within the specified period. The Louisiana Attorney General is also authorized to enforce the law, and violation of an administrative or court order issued under the law can result in a civil penalty of up to $500 per violation.

The Attorney General is additionally required to maintain a toll-free telephone number and electronic reporting system through which consumers can report unlawful debit-card surcharges. Complaints can include documentation such as receipts or invoices showing the transaction and surcharge. This makes it particularly important for businesses to identify potential problems before customers do.

For LLSSA members, the practical message is simple: check your payment-processing setup now. Do not assume your processor automatically changed an older configuration when Louisiana's new law became effective. Contact your merchant-services or payment-processing provider and specifically ask whether any surcharge, service fee, non-cash adjustment, or other additional charge can be applied to a debit-card transaction. If so, determine what changes are necessary to comply with Louisiana law.

Members should also distinguish the new debit-card prohibition from their overall payment-pricing strategy. Act 751 specifically addresses surcharges imposed for the privilege of using a debit card. Businesses considering cash discounts, credit-card surcharges, convenience fees, or other pricing arrangements should verify that their practices comply with all applicable state law, federal requirements, and payment-network rules rather than assuming that a program that was acceptable in the past remains compliant.

A one-minute review of a few receipts and a conversation with your payment processor could prevent a much larger compliance problem later. Louisiana's debit-card surcharge law is already in effect, making now the time for life safety and property protection companies to understand exactly what their customers are being charged.



Members can review Act 751 (SB 254) directly through the Louisiana Legislature for the complete statutory language. This article is provided for general informational purposes only and should not be considered legal advice. Businesses with questions about how Act 751 applies to their specific payment practices should consult qualified legal counsel or their payment-processing compliance professional.