Is Your Terminal Surcharging Debit Cards? How to Check

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This page is general information, not legal advice, current as of October 9, 2026. CELER Merchants is an independent merchant services agent, not a law firm or a processor. Surcharge rules come from the card networks, from state law and from your merchant agreement. Confirm your setup with your processor and your own counsel before you change how you charge.

What changed in Louisiana

Louisiana's Act 751 of 2026 (SB 254) took effect on August 1, 2026. It bars retail businesses from adding a surcharge to debit card payments and lets customers sue over repeated or uncured violations. The act does not address credit card surcharges, so credit card surcharging in Louisiana still follows the card network rules. Our state-by-state guide lists Louisiana alongside every other state.

The rule that applies in every state

Visa allows surcharges on credit cards only, never on Visa debit or prepaid cards, even when the customer chooses credit on a debit card. Mastercard allows surcharges on consumer and corporate credit cards only and prohibits debit surcharging. Several states go further: Colorado bans surcharges on debit and gift cards, and Maine and Puerto Rico ban surcharges on credit and debit cards alike. So the Louisiana law is new, but the debit rule is not. Any business that surcharges needs a setup that leaves debit and prepaid cards alone.

Where it goes wrong: one fee on every card

The most common mistake is a flat percentage added to every card payment. Some terminals and checkout pages are set up that way, especially when a surcharge program was switched on quickly. The terminal or gateway has to tell debit from credit by the card's identification number, and apply the fee only to credit. If it does not, every customer paying by debit is charged a fee they should not see.

Three checks for this week

First, run a small test sale with a debit card, then with a credit card, and read both receipts. The debit receipt should show no surcharge. Second, ask your provider in writing how your terminal and online checkout tell debit from credit and prepaid, and whether the setting is on for every device. Third, check your signs at the entrance, at the till and on the checkout page. They should say the fee applies to credit cards only, and show the amount where your state requires it. Fix anything that does not match before the next busy weekend.

What changes for multi-location and enterprise operations

Larger businesses often have several terminal models, an online checkout and sometimes self-serve kiosks, each configured separately. Test a debit sale on every device type and channel, not just one. Keep a list of which locations surcharge and which states they are in, because the rules differ by state and some states ban credit card surcharges entirely. When you add a location or replace hardware, make the debit check part of the setup. Ask your provider for written confirmation of how surcharging is configured on each merchant ID.