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Committee backs ban on debit‑card surcharges, shifts enforcement to attorney general
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Summary
Senator Mizell's bill, SB 254, would prohibit merchants from imposing surcharges on debit-card transactions; an adopted amendment moves enforcement to the Attorney General’s consumer-protection portal and removes a statutory cure period. Public comment highlighted local business costs and processing-fee estimates.
Senator Mizell told the Senate Commerce Committee on March 11 that Senate Bill 254 would prohibit merchants from imposing surcharges on debit-card transactions and move enforcement authority for that prohibition to the Attorney General’s consumer-protection apparatus. "The amendment basically… moves the language from title 9 to title 51, removing it from the finance institutions to the AG's office for actions on infractions or penalties," Mizell said when describing Amendment 733.
Why it matters: Supporters said the bill brings state law in line with the Durbin amendment and Dodd‑Frank provisions discussed as long-ago federal limits on debit‑card processing. Mizell and others framed the measure as protecting consumers from what they called excessive surcharges on debit transactions.
Public comment: Charles Bordelon of DeRidder, who identified himself as a local business observer, testified in support and described what he said were large cumulative costs from surcharges at his local tire business: "His transaction fee currently is 29¢… he paid last year $25,000 in debit card surcharge fees to the third person who programs his box," Bordelon said, arguing that third-party processors should be accountable.
Committee Q&A and details: Committee members questioned whether the bill covers credit cards (Mizell confirmed it does not), and discussed the federal processing-cost benchmark for debit transactions (witnesses and members referenced roughly $0.21–$0.30 per transaction). A committee member noted card networks cap surcharges by contract (examples cited: Visa ~3%, Mastercard ~4%), which is a contractual, not statutory, practice.
Outcome: Senator Price moved to report SB 254 with amendments; the motion carried with no recorded objections. The amendment removes a statutory cure period and directs the Attorney General’s office to provide a portal and an 800-number for consumer complaints related to debit-card surcharges.
What’s next: SB 254 was reported favorably and will proceed toward floor consideration; the AG’s office was noted as the point of consumer contact for reported violations.
