Walmart and other businesses in the state of Louisiana will have to change the way they charge customers starting August 1, when a new law takes effect that prohibits charging extra fees to customers who pay with debit cards. The measure seeks to prevent shoppers from paying more just for choosing that payment method, a practice some stores had been using until now.
The law was signed by Louisiana Governor Jeff Landry on June 2, and establishes that no business may add an extra charge at the time of the transaction when the customer uses a debit instead of cash, check, or credit card. The measure applies to all businesses in the state, not just large chains.
What exactly changes with this law?
The law defines a “surcharge” as any additional amount added to the total of a purchase solely for using a debit card. As of August, that practice is directly prohibited in Louisiana, regardless of the type of business.
The scope is broad: it applies to supermarkets, gas stations, and restaurants, among other businesses. Anyone shopping at Walmart or another store and pays with debit should no longer see that additional charge reflected on the final receipt.
Among the key points of the law are:
- Total ban on surcharges for debit card payments
- Applies to all businesses in the state, not just major chains
- Effective date: August 1
What are shoppers doing now and what will change?
So far, many customers changed the way they paid to avoid the surcharge: they chose cash, check, or credit instead of debit, even when that was not their preferred option. That is exactly what the new law aims to end.
Starting August 1, shoppers won’t have to change anything about the way they pay: they will be able to use debit without that extra charge, since the responsibility for not applying it now falls on the business.
What happens if a business does not comply?
If a business still adds the surcharge, the customer can file a complaint. Before starting legal action, they must notify the business in writing of the alleged violation.
From that notice, the business has 30 days to refund the amount charged improperly, otherwise it will have to answer for the damages caused to the cardholder.