HLS 10RS-440 ENGROSSED
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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 or debit card in lieu of9
payment by cash, check, or similar means. For the purposes of this Section,10
"surcharge" means any additional amount of money imposed at the time of the sales11
or lease transaction by the merchant, seller, or lessor that increases the charge to the12
buyer 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 ENGROSSED
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. Notwithstanding Subsection A of this Section, a public utility regulated3
by the Louisiana Public Service Commission may impose a surcharge for payments4
made with a credit or debit card for utility fees and charges if the surcharge is5
disclosed clearly to the cardholder prior to payment and does not exceed the costs6
associated with providing the credit or debit card service that is directly incurred by7
the public utility or is assessed by an authorized third-party payment service provider8
or is charged and collected by a designated third-party for a credit or debit card9
transaction.10
D. Any seller or lessor who willfully violates the provisions of this Section11
by imposing a surcharge on a cardholder who elects to use a credit or debit card and12
who fails to pay that amount to the cardholder within thirty days of a written demand13
by the cardholder to the seller or lessor by certified mail, shall be liable to the14
cardholder for three times the amount at which actual damages are assessed. The15
cardholder shall also be entitled to recover reasonable attorney fees and costs16
incurred in the action. A cause of action under this Section may be brought in small17
claims court, if applicable, or in a court of competent jurisdiction.18
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 or debit 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 or debit card in lieu of
payment by cash, check, or similar means.
Proposed law provides for the definition of "surcharge".
Proposed law exempts governmental subdivision and public utilities 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. HLS 10RS-440 ENGROSSED
HB NO. 344
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Commerce to the original
bill.
1. Included debit cards in the surcharge prohibition.
2. Exempted public utilities regulated by the Public Service Commission from the
surcharge prohibition.