Louisiana debit card surcharge ban (Act 751) for restaurants

Card fees are one of the heaviest costs on a restaurant's profit and loss statement, and some owners add a surcharge to the check to recover them. Louisiana has now drawn a line around part of that practice. Act 751 of the 2026 session, signed on June 2, 2026, bans a surcharge on debit card payments from August 1, 2026. Here is what the Act says, what it leaves alone and how to review your terminal settings. Card network rules and your processing agreement still apply, so read them too.

What does Act 751 prohibit?

The Act creates R.S. 51:3081 and 3082. It says that in a sale of goods or services, a retail business shall not impose a surcharge on a cardholder who uses a debit card instead of cash, check, a credit card or any similar means of payment. A retail business is any person or entity engaged in the sale of goods or services, so a restaurant, a bar and a food truck are all covered. A surcharge is any additional amount imposed at the time of the transaction that increases the charge to the cardholder for the privilege of using a debit card.

When did the ban start?

The Act is effective August 1, 2026. The legislature's bill page shows that the Governor signed it on June 2, 2026, after the Senate agreed to the House amendments on May 27. Any debit surcharge you charged before August 1 was a separate matter. From August 1, a surcharge on a debit card payment is a violation.

Does it cover credit cards?

The Act speaks only about debit cards. It defines a debit card as a card or other payment device that debits funds directly from a cardholder's deposit account. The Act contains no rule on credit card surcharges. Card network rules and your merchant agreement can limit surcharging on credit cards, so ask your processor in writing what is allowed before you charge one. Do not assume a credit surcharge is permitted just because this Act does not mention it. The card networks' own rules are the tighter limit, with a ceiling of 3 percent on credit cards and no surcharge on debit or prepaid cards, so a restaurant that surcharges credit cards should stay at or under 3 percent and disclose it clearly.

How do consumers enforce it?

A cardholder who is surcharged can sue for actual damages, but first has to send the business written notice of the alleged violation. If the business cures the violation and reimburses the cardholder for any surcharge within 30 days after receiving the notice, no private right of action arises. A private suit is open only for willful violations, repeated violations or violations not cured in that time. In practice, a refund within 30 days ends the risk of a private suit for a first mistake, which is why you should keep a clear process for handling written notices.

What can the attorney general do?

The Attorney General may bring a civil action against a retail business that violates the Act, and a court that grants judgment or an injunction must award the Attorney General reasonable fees and costs. The Act's resume digest adds that a business that violates an administrative or court order can face a civil penalty of up to $500 for each violation, and that the Attorney General must keep a toll-free number and an electronic system for reporting an unlawful debit surcharge. A guest can therefore report you without hiring a lawyer.

How do you check your payment setup?

Walk through your terminal and your online ordering page. Does a fee or surcharge line appear when a customer taps a debit card? Some terminals apply a surcharge to every card unless the card type is detected and excluded. Ask your processor how the terminal tells debit from credit, and test it with a real debit card before service. Check your website checkout, your phone ordering and any third party ordering link that uses your merchant account. Remove the surcharge from any path that cannot tell the difference.

What are the alternatives to a surcharge?

Some owners fold card costs into menu prices, and a small increase on a few high-volume items often recovers the cost without a line on the check. Others offer a discount for paying in cash, but the Act says nothing about discounts, and card network rules and your agreement may have their own wording, so ask your processor before you advertise one. Another route is to review your processing plan. Rates differ between providers and between plans, and a yearly review of your statement can save more than a surcharge raises, with no risk of a complaint.

What should you do next?

Read your processing agreement and your last statement. Find the line that shows your card costs. Decide whether to raise menu prices a little instead of adding a surcharge, since a higher menu price avoids the surcharge question altogether. Then train staff on what to say when a guest asks about a card fee.

More guides for your business:

• Louisiana gift card law for restaurants
• Louisiana Click-to-Cancel Act for restaurant memberships
• Restaurant card surcharge vs cash discount: how to choose

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