Committee backs ban on debit‑card surcharges, shifts enforcement to attorney general

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.