WGNO

Expert: 4% credit card fee on purchases in Louisiana is the price of doing business, convenience for customers

LAFAYETTE, La. (KLFY) – There’s a price for convenience.

You know how you can pay a cash price or a credit price for gasoline? The same can be said for just about any other purchase you make these days, like food, clothing, etc. If you pay with a credit card, expect to pay slightly more.

“It’s saved merchants so much money to keep them in business, especially going into covid and coming out of it,” said Leslie Sandlin of LM Enterprises.

Sandlin’s company provides card transaction services for many business in the Lafayette area.
She says businesses used to absorb the cost of credit transaction fees, to avoid passing it to customers, but now they can’t afford it.

“I have seen across the board. Every business that is a client of mine or a potential client, we talk about it. What are the savings to keep you in business?”

One customer, who wishes to remain anonymous, says she recently made a purchase at a local store and noticed $4 was tacked on to her bill.

“I was very disappointed and upset,” she said. “I was informed it was only for credit cards and I used a debit card.”

“Did they ask to run it either credit or debit?”

“No they did not.”

Businesses in Louisiana are allowed to charge up to 4% of your total bill when you use a credit card.
The only way to avoid this charge is to pay by cash, pay with a check, or tell the business to run your card as “debit” and enter your pin number.

“One thing they do require, those businesses disclose to the consumer that there is a type of surcharge for using a credit card,” said Chris Babin of the Better Business Bureau.

Businesses are required to post a sign that says the 4% credit transaction fee is being charged, and it has to be on your receipt.