NEW ORLEANS (WVUE) – A new state law prohibits businesses in Louisiana from charging customers debit card fees with one local restaurant owner saying his business will now have to absorb those costs.
Act 751, which went into effect Aug. 1, still allows businesses to charge fees for credit card transactions.
The legislation also says that if a business charges a debit card surcharge, consumers must give the business 30 days to issue a refund before filing a lawsuit.
Tommy Cvitanovich, owner of Drago’s restaurant in Metairie, said with the new law in place, he’ll now be solely responsible for a 1.75% and 20 cents per swipe fee on debit card transactions.
“Those fees are just such a burden on merchants and restaurants — especially restaurants — when we’re working on such small margins to begin with,” Cvitanovich said.
Cvitanovich said the law also forced him to accelerate a planned upgrade to his point-of-sale system. He said the $80,000 overhaul — covering his Metairie and Baton Rouge locations — had been scheduled for next year but was completed this week because the old system could not differentiate between a credit card and a debit card.
“I don’t want my employees to have to be the debit card police,” Cvitanovich said.
While Cvitanovich said he supports removing the fee burden from consumers, he does not believe merchants should be left to cover the difference.
He said a lasting fix would require the legislature to hold banks more accountable.
Cvitanovich said he is hopeful the operational changes prompted by the new law will make things run more smoothly going forward.
The new law also establishes a toll-free number at the state Attorney General’s Office where consumers can report erroneous fees.
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