HLS 10RS-440 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 344
BY REPRESENTATIVE MICHAEL JACKSON
CREDIT/CARDS: Prohibits a surcharge on credit card transactions
AN ACT1
To enact R.S. 9:3518.4, relative to credit card transactions; to prohibit a surcharge on credit2
card transactions; to provide for an exemption; to provide for a penalty; and to3
provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 9:3518.4 is hereby enacted to read as follows: 6
ยง3518.4. Credit card transactions; prohibitions; exemptions; penalty7
A. No seller or lessor in any sales or lease transaction with a consumer shall8
impose a surcharge on a cardholder who elects to use a credit card in lieu of payment9
by cash, check, or similar means. For the purposes of this Section, "surcharge"10
means any additional amount of money imposed at the time of the sales or lease11
transaction by the merchant, seller, or lessor that increases the charge to the buyer12
or lessee for the privilege of using a credit card.13
B. Notwithstanding Subsection A of this Section, a governmental subdivision14
may impose a surcharge for payments made with a credit or debit card for taxes,15
fines, charges, utility fees, regulatory fees, license or permit fees, or the provision of16
a specific service provided by that governmental subdivision if the surcharge is17
disclosed clearly to the cardholder prior to payment and does not exceed the costs18
associated with providing the credit or debit card service that are directly incurred19 HLS 10RS-440 ORIGINAL
HB NO. 344
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
by the governmental subdivision or assessed by an authorized third party payment1
service provider for a credit or debit card transaction.2
C. Any seller or lessor who willfully violates the provisions of this Section3
by imposing a surcharge on a cardholder who elects to use a credit card and who fails4
to pay that amount to the cardholder within thirty days of a written demand by the5
cardholder to the seller or lessor by certified mail, shall be liable to the cardholder6
for three times the amount at which actual damages are assessed. The cardholder7
shall also be entitled to recover reasonable attorney fees and costs incurred in the8
action. A cause of action under this Section may be brought in small claims court,9
if applicable, or in a court of competent jurisdiction.10
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Michael Jackson HB No. 344
Abstract: Prohibits a surcharge on credit card transactions.
Proposed law prohibits a seller or lessor in any sales or lease transaction with a consumer
to impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by
cash, check, or similar means.
Proposed law provides for the definition of surcharge.
Proposed law exempts governmental subdivision from provisions of proposed law if the
surcharge is disclosed clearly to the cardholder prior to payment and does not exceed the
costs associated with providing the credit or debit card service that is directly incurred by
the governmental subdivision or assessed by an authorized third party payment service
provider for a credit or debit card transaction.
Proposed law provides that whomever violates the provisions of proposed law to pay to the
cardholder, within 30 days of written demand, the amount of the transaction or if not within
30 days, shall be liable three times the amount at which actual damages are assessed.
Proposed law also allows for the recovery of attorney fees and costs.
(Adds R.S. 9:3518.4)