Louisiana Credit Card Surcharge Laws

Quick Summary:

• Credit card surcharging is legal in Louisiana with proper disclosure requirements
• Maximum surcharge follows federal 4% limit (3% for Visa transactions)
• Businesses must post clear signage and show surcharges on receipts
• State agencies impose surcharges - Louisiana Department of Revenue charges 2.49%
• Debit card surcharging remains prohibited under federal regulations

Louisiana allows businesses to implement credit card surcharges as a way to offset processing costs, following federal guidelines without additional state-specific restrictions. The state takes a business-friendly approach to surcharging, with even government agencies like the Louisiana Department of Revenue implementing convenience fees on credit card transactions.

Louisiana businesses can charge up to 4% on credit card transactions, though Visa's network rules limit their brand to 3%. The key requirement is transparency - businesses must clearly disclose surcharges to customers before transactions occur and display the fees prominently on receipts. This straightforward approach makes Louisiana one of the more permissive states for credit card surcharging practices.

Legal Disclaimer: This information is for reference only and does not constitute legal advice. Consult with an attorney before implementing surcharging programs, as card network rules and federal regulations continue to evolve.

Is Credit Card Surcharging Legal in Louisiana?

Yes, credit card surcharging is fully legal in Louisiana with proper disclosure to customers. Louisiana follows federal guidelines for surcharging without imposing additional state-specific restrictions, making it one of the more straightforward states for businesses implementing credit card fees.

The state's permissive approach is demonstrated by its own practices - Louisiana government agencies routinely charge convenience fees for credit card payments. The Louisiana Department of Revenue charges a 2.49% convenience fee for tax payments made by credit card, showing the state's acceptance of surcharging as a legitimate business practice.

Louisiana businesses must follow federal regulations and card network rules when implementing surcharges, but face no additional state-level restrictions or caps beyond the standard federal 4% maximum (3% for Visa transactions).

What's Allowed

Louisiana businesses can implement surcharging under these conditions:

• Charge up to 4% surcharge following federal maximums (3% for Visa brand)
• Post clear signage informing customers about credit card surcharge policies
• Display surcharges on receipts as separate line items for transparency
• Apply consistent rates across all credit card transactions regardless of brand
• Use percentage-based fees calculated from the total transaction amount
• Implement for all transaction types - in-person, online, and telephone payments

What's Not Allowed

Louisiana law and federal regulations prohibit these practices:

• Surcharging debit cards - prohibited under federal Durbin Amendment provisions
• Exceeding federal caps - cannot charge more than 4% (3% for Visa)
• Hidden surcharges - must disclose fees before customers complete transactions
• Profit from surcharges - fees should only recover actual processing costs
• Inconsistent application - cannot vary rates between different credit card brands
• Flat dollar amounts - surcharges must be percentage-based, not fixed fees

Penalty For Non-Compliance

Louisiana enforcement of surcharging violations occurs through multiple channels:

• Consumer complaints filed with the Louisiana Attorney General's Consumer Protection Section
• Card network penalties for violations of Visa, Mastercard, or other brand rules
• Federal enforcement for violations of federal surcharging regulations
• Better Business Bureau complaints for consumer dispute resolution

Louisiana consumers experiencing improper surcharging can contact the Attorney General's Consumer Protection Hotline at (225) 326-6465 or file complaints through the state's consumer protection portal. The Consumer Protection Section handles complaints about unfair or deceptive business practices, including improper fee disclosure.

How Louisiana Government Agencies Use Surcharges

Louisiana provides a clear example of surcharging in practice through its own government operations. Multiple state agencies charge convenience fees for credit card payments, demonstrating the state's acceptance of surcharging as a standard business practice.

Louisiana Department of Revenue charges a 2.49% convenience fee for credit card tax payments, applicable to both individual and business tax liabilities. This fee applies whether payments are made online through the Louisiana Taxpayer Access Point (LaTAP) system or by telephone at 1-888-272-9829.

Other Louisiana state agencies are authorized to charge convenience fees for credit card payments, but must obtain approval from the state treasurer and legislative committees. Under Louisiana Revised Statute 49:316.1, agencies must disclose convenience fees and allow customers to cancel transactions before completion.

This government-level implementation of surcharging provides Louisiana businesses with clear precedent for their own surcharging programs, showing that the practice is not only legal but actively used by the state itself.

Is Debit Card Surcharging Legal in Louisiana?

No, debit card surcharging is illegal in Louisiana and all U.S. states under federal law. The Durbin Amendment to the Dodd-Frank Act specifically prohibits merchants from adding surcharges to debit card transactions, regardless of how they're processed.

This federal prohibition applies to all debit transaction types:

• PIN debit transactions - traditional debit with personal identification number entry
• Signature debit transactions - debit cards processed through credit networks
• Prepaid debit cards - generally prohibited from surcharging under federal rules

The reasoning behind this prohibition stems from federal caps on debit interchange fees. Large card issuers face federal limits of 0.05% plus $0.21 per debit transaction, making debit processing significantly less expensive than credit card processing.

Louisiana businesses should ensure their payment systems properly distinguish between credit and debit cards to avoid inadvertently surcharging debit transactions. When customers use debit cards, businesses can encourage PIN entry to qualify for lower processing rates without adding surcharges.

Louisiana Credit Card Surcharge FAQs

Can Louisiana restaurants add surcharges to both dine-in and takeout credit card orders?

Yes, Louisiana restaurants can add credit card surcharges up to 4% (3% for Visa) on all credit card transactions. They must post clear signage about surcharges in visible locations and ensure the fee appears as a separate line item on receipts. For online ordering systems, surcharge information must be displayed during the checkout process before payment completion.

Do Louisiana contractors need special permissions to charge credit card fees on invoiced work?

No special permissions are required for Louisiana contractors to add credit card surcharges to invoiced services. They must follow standard disclosure requirements by informing clients about surcharge policies before work begins or when presenting invoices for payment. The surcharge should not exceed 4% (3% for Visa) and must reflect actual processing costs rather than additional profit.

What's the difference between Louisiana's approach and states with stricter surcharge limits?

Louisiana follows federal guidelines without additional state restrictions, allowing the full 4% federal maximum (3% for Visa). States like Kentucky cap surcharges at 3%, while others like Colorado limit them to 2%. Louisiana's approach is more business-friendly, giving merchants maximum flexibility within federal bounds while requiring only basic disclosure compliance.

Can Louisiana gas stations display dual pricing for cash and credit purchases?

Yes, Louisiana gas stations can use dual pricing systems showing separate cash and credit prices. They can also display credit card prices and offer cash discounts. The key requirement is clear communication to customers about pricing differences before they begin fueling. Any credit card premium must stay within the 4% federal limit (3% for Visa) and be clearly posted.

Are there industry-specific restrictions on credit card surcharges in Louisiana?

Louisiana doesn't impose industry-specific surcharge restrictions beyond federal requirements. However, certain businesses may face additional considerations - legal professionals should check Louisiana State Bar ethics rules, healthcare providers must consider insurance billing requirements, and government contractors may face specific procurement regulations regarding fee structures.