Louisiana Businesses Could Be Fined for Debit Card ‘Convenience Fees’

LOUISIANA - If you’ve looked at a receipt and spotted a “convenience fee” after paying with your debit card, Louisiana lawmakers are trying to put a stop to it.

A new bill moving through the Louisiana Legislature could soon make it illegal for businesses to add surcharges to debit card purchases, and companies that ignore the rule could face financial penalties.

Louisiana Senate Bill 254 Targets Debit Card Surcharges

Senate Bill 254, introduced by Beth Mizell, would prohibit retail businesses in Louisiana from charging extra fees when customers use debit cards for purchases.

The bill has already passed the Louisiana Senate unanimously, and later cleared the Louisiana House with a strong 83-14 vote after amendments were added according to KPLCTV.com.

If the legislation becomes law, Louisiana Attorney General Liz Murrill's Office would be allowed to investigate complaints from consumers and pursue civil penalties against businesses that continue charging illegal debit card fees.

READ MORE: Louisiana Bill to Criminalize 'Loud Sounds' Passes House

Why Do Businesses Charge Fees For Using Debit Cards?

Many Louisiana businesses, and businesses across the country, charge “convenience fees” or surcharges on debit cards because processing card payments costs them money.

Every time you swipe, tap, or insert a debit card, the business typically pays a fee to the card network like Visa or Mastercard, the payment processor, and the bank handling the transaction.

For small businesses especially, those fees can add up fast.

Businesses Could Face $500 Penalties

Under the proposed law, businesses that violate the rule could face fines of up to $500 per violation.

The bill also outlines a complaint system that would allow customers to report businesses directly to the state.

READ MORE: Louisiana, Is It Illegal to Blow Grass Clippings Into the Street?

According to KPLC, Louisiana would establish -

A toll-free hotline
An online reporting system
A process for consumers to submit receipts showing the surcharge

According Senate Bill 254, customers would be able to submit documentation including the business name, transaction date, surcharge amount, and copies of receipts.

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Credit Card Fees Would Still Be Allowed

Louisiana Senate Bill 254, if passed, will only apply to purchases made with debit cards, not credit cards. Businesses could still legally charge fees on credit card purchases under existing payment processing rules.

Federal regulations already treat debit card transactions differently from credit card transactions, which is one reason lawmakers say they’re focusing specifically on debit card surcharges.

So if you pay with a credit card at your favorite restaurant, gas station, or local shop, you may still see those extra processing fees added to your bill.

When Could The New Louisiana Debit Card Law Take Effect?

If Senate Bill 254 officially becomes law, the measure could take effect as early as August 1, 2026.

That means Louisiana businesses may soon need to rethink how they handle payment processing fees before customers start filing complaints with the state.

Read more over at KPLCTV.com.