Is a cash discount legal in Louisiana?
Short answer: Louisiana has no credit card surcharge statute, but since 1 August 2026 retail businesses may not add any extra charge for paying by debit card. A cash discount with both prices posted before payment is not a surcharge under Visa’s rules, and federal law protects discounts for cash. A true cash discount from a posted card price isn’t a debit fee, but a debit fee renamed “cash discount” still is.
Louisiana at a glance.
Surcharges limited
- Surcharges
- Credit card surcharges: no state statute. Since 1 Aug 2026 retail businesses may not surcharge debit cards. Attorney General enforcement; civil penalty up to $500 per violation of an order; private right of action after a 30-day cure notice.
- Cap
- No state cap. Card-network rules apply: Visa lesser of 3% or the merchant's discount rate; Mastercard lesser of cost or 4% (secondary).
- Debit cards
- Banned: no 'additional amount of money imposed at the time of the transaction' for using a debit card (R.S. 51:3081).
- Cash discount with both prices
- Not addressed in the Act. A true cash discount from a posted card price is not 'imposed at the time of the transaction', but a debit fee renamed 'cash discount' would still be a debit surcharge.
- Law
- La. R.S. 51:3081-3082 (Act 751 of 2026, SB 254)
Verified on primary source (enrolled Act 751, Louisiana Legislature).
What to post on your tags.
- Show the cash price and the card price on every tag, menu or price list, the same size.
- Charge the posted price for how the customer pays. Don’t add a fee, “service charge” or “non-cash adjustment” at the register.
- Put a sign at the door and the counter explaining the two prices.
- Debit pays the posted card price. Never add a fee to debit.
Paymantis sets up cash discount processing for independent shops in Louisiana: free sign-up, free monthly service and a free terminal, with tags and signs worded for your state. Get started free.
Questions owners ask.
Can a business in Louisiana charge a fee for using a credit card?
Only within limits. No state cap. Card-network rules apply: Visa lesser of 3% or the merchant's discount rate; Mastercard lesser of cost or 4% (secondary). Credit card surcharges: no state statute. Since 1 Aug 2026 retail businesses may not surcharge debit cards. Attorney General enforcement; civil penalty up to $500 per violation of an order; private right of action after a 30-day cure notice.
Can I charge more for debit cards in Louisiana?
Not as a fee. Banned: no 'additional amount of money imposed at the time of the transaction' for using a debit card (R.S. 51:3081). With a cash discount, debit pays the posted card price.
Is a cash discount legal in Louisiana?
Not addressed in the Act. A true cash discount from a posted card price is not 'imposed at the time of the transaction', but a debit fee renamed 'cash discount' would still be a debit surcharge. Post both prices before the customer pays and add nothing at the register.
Sources
General information, not legal advice. Rules change and differ by state and city; check the rules where your business is. See our terms and disclaimers.