SHREVEPORT, La. - It's Thursday and that means it's time for "Doing Better Business."
Jo Ann Deal with the Better Business Bureau explains a new Louisiana law banning surcharges to debit card purchases.
Louisiana shoppers have new protections at the checkout counter under a law that prohibits retailers from adding surcharges to debit card purchases.
Senate Bill 254, now Act 751, was signed by Gov. Jeff Landry on June 2 and took effect Aug. 1. The law prohibits retail businesses from charging customers an additional fee for using a debit card instead of cash, a check, a credit card or another form of payment.
The law defines a surcharge as an additional amount imposed at the time of a transaction that increases the charge to a customer for using a debit card.
The change applies specifically to debit cards, which take money directly from a customer's bank account. It does not prohibit businesses from charging fees associated with other forms of payment when those fees are otherwise allowed by law.
The Better Business Bureau said consumers should pay attention to their receipts and keep documentation if they believe a business has charged an unlawful debit card surcharge.
How consumers can report violations
Consumers who believe they were charged a prohibited debit card surcharge can report the business to the Louisiana Attorney General's Office, which has authority to bring civil actions to enforce the law.
Complaints should include:
- The name and address of the business.
- The date and amount of the transaction.
- The amount of the surcharge.
- A receipt, invoice or other documentation showing the surcharge.
Louisiana Attorney General's Consumer Dispute Form
The Attorney General's Office also accepts consumer disputes involving unfair or deceptive business practices.
Under Act 751, a business that violates an administrative or court order issued over a debit card surcharge can face a civil penalty of up to $500 per violation.
Consumers can seek damages
The law also gives consumers a private right of action in certain circumstances. Before filing a civil lawsuit, a consumer must provide written notice to the business describing the alleged violation.
The business then has 30 days after receiving the notice to correct the violation and reimburse the consumer for the surcharge. If the business does so within that period, the consumer does not have a private right of action based on that violation. The law's private right of action applies to willful or repeated violations and violations that are not corrected within the 30-day period.
The new law is intended to prevent consumers from being charged extra simply because they choose to use a debit card to pay for goods or services.
Consumers who believe they have been charged a prohibited fee should keep their receipt and other transaction records before contacting the business or filing a complaint.
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