Credit card processing and merchant services in Louisiana
Since August 1, 2026, Louisiana bans surcharges on debit cards, and parish taxes sit on top of the state's 5%. A flat card fee that also lands on debit cards has to change.
Card surcharges
Surcharging allowedNo state cap on credit card surcharges, but Louisiana has banned debit card surcharges since August 1, 2026.
Sales tax
5% state rate, plus parish
Last checked
October 6, 2026
Louisiana's newest payment law took effect on August 1, 2026. Act 751 of 2026 says a retail business may not impose a surcharge on a cardholder who pays with a debit card instead of cash, a check, a credit card or a similar method. Visa and Mastercard already ban surcharges on their debit and prepaid cards, so a compliant surcharge program shouldn't need to change. The businesses this catches are the ones adding one flat card fee to every payment, debit included.
The act also builds in a cure period. A customer has to give written notice before suing, and if the business corrects the violation and refunds the surcharge within 30 days of that notice, no private lawsuit can be brought over it. Treat that as a safety net, not a plan. Check how your terminal tells debit from credit before a customer has to point it out.
Credit cards are a different story: we haven't found a Louisiana statute that caps credit card surcharges, so Visa's 3% and Mastercard's 4% limits apply. Sales tax has two layers. The state rate has been 5% since January 1, 2025, up from 4.45%, and parishes and cities add their own rates. Local taxes are paid to local collectors, and the Department of Revenue's Parish E-File site handles electronic state and parish returns in one place.
Our New Orleans page covers Orleans Parish's 10% rate and its hotel and parking taxes. Statewide, we price on interchange-plus, and a free statement review shows what each card type costs you today.
What Louisiana merchants should know
Debit card surcharge ban (Act 751)
From August 1, 2026, a retail business may not impose a surcharge on a cardholder who uses a debit card instead of cash, a check, a credit card or another similar means of payment. Act 751 of 2026 (Senate Bill 254) was signed by the Governor on June 2, 2026.
Before suing, a cardholder must give the business written notice. If the business cures the violation and reimburses the surcharge within 30 days after receiving that notice, no private right of action arises from it.
Sources: Louisiana Legislature, Act 751 of 2026 (Senate Bill 254), enrolled text; Louisiana Legislature, SB 254 (2026 Regular Session) bill status
Credit card surcharges in Louisiana
We haven't found a Louisiana statute that caps or bans credit card surcharges, and the 2016 NCSL table lists none. The card network rules apply:
- Visa: up to your merchant discount rate or 3%, whichever is lower, with notice to your acquirer 30 days before you start.
- Mastercard: Louisiana merchants can surcharge up to their average effective merchant discount rate for Mastercard credit or 4%.
- Disclosure at the point of entry, at the point of sale and on every receipt.
Sources: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table); Visa, U.S. Merchant Surcharge Q and A (PDF); Mastercard, Merchant surcharge rules (US)
State and parish sales tax
The state sales tax rate has been 5% since January 1, 2025; it was 4.45% before that. Sales taxes levied by parishes, cities and other local bodies are added to the state tax.
Local taxes are collected locally. The Department of Revenue's Parish E-File site lets businesses file state and parish or city sales tax returns electronically.
Sources: Louisiana Department of Revenue, What is the state sales tax rate?; Louisiana Department of Revenue, What is the sales tax rate in Louisiana?; Louisiana Department of Revenue, Parish E-File
Payment services we provide
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Common questions
Can I add a fee for debit card payments in Louisiana?
No. Since August 1, 2026, Act 751 bars a retail business from imposing a surcharge on a cardholder who pays by debit card instead of cash, check, credit card or a similar method. Visa and Mastercard rules already prohibited surcharges on their debit and prepaid cards, so the state law mainly closes the door on blanket card fees.
Does the debit ban affect a flat convenience fee?
It can. The act bars a surcharge on a debit card payment, so a flat fee that lands on debit cards along with credit cards deserves a close look, whatever you call it. Ask your attorney before relying on a convenience fee label, and make sure your terminal can tell debit from credit.
Are credit card surcharges still allowed in Louisiana?
Yes. We haven't found a Louisiana statute that limits credit card surcharges. Visa caps them at 3% or your merchant discount rate and Mastercard at 4% or your average effective rate, and both require disclosure before the sale and on the receipt. Visa also requires 30 days' notice to your acquirer.
What sales tax rate do I charge in Louisiana?
The state's 5%, in place since January 1, 2025, plus the local rates where you sell. Local rates differ by parish and city. In New Orleans, for example, the combined rate on most sales is 10%.
Who collects local sales tax in Louisiana?
Local collecting authorities, not the state. In New Orleans, the City collects the Orleans Parish sales tax. The Department of Revenue's Parish E-File site lets you file state and parish or city returns electronically in one place.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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