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'Credit Card Chaos'? Financial Institutions Bet Big on Repeal of First-of-Its-Kind Illinois Law
Federal regulators say the move would block an Illinois law that bans swipe fees on taxes and tips, which merchants say helps banks and card companies.
- The Office of the Comptroller of the Currency, an independent bureau of the U.S. Treasury Department, plans to issue an Order Preempting the Illinois Interchange Fee Prohibition Act, according to a federal posting this week.
- Illinois lawmakers passed the swipe-fee ban at retailers' behest to avoid a separate tax increase, with the law scheduled to prohibit interchange fees on tax and tip portions starting July 1, 2026.
- Financial institutions argue the ban would eliminate approximately 10% of their interchange revenue and create massive noncompliance fines, while Illinois Retail Merchants Association President Rob Karr estimated retailers would gain north of $200 million.
- State Rep. Margaret Croke, a Chicago Democrat, and State Sen. Mark Walker, an Arlington Heights Democrat, expressed caution about the federal directive, saying they must evaluate whether it applies to all banks or only nationally chartered ones.
- With oral arguments scheduled for May 13, the 7th Circuit appellate court may not rule before July 1, 2026, and financial institutions worry implementation could provide a blueprint for approximately 30 states considering similar legislation.
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Pritzker: Swipe fee ban works, banking groups, feds push for repeal
(The Center Square) – Gov. J.B. Pritzker says he hopes the federal government does what’s best for consumers and businesses as a Treasury Department agency moves to preempt an Illinois law banning swipe fees on the tax and tip portions…
Associated Press News+4 Reposted by 4 other sources
‘Credit card chaos’? Financial institutions bet big on repeal of first-of-its-kind Illinois law
“Credit cards may not work for sales tax or tips starting July 1.” By now, you’ve heard that claim, but whether it’s true depends on who you ask.
·United States
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‘Credit card chaos’? Financial institutions bet big on repeal of first-of-its-kind Illinois law – Capitol News IL
Adding a new wrinkle on Wednesday, the federal office of the Comptroller of the Currency, a subset of the U.S. Treasury Department, appeared poised to issue an order preempting Illinois’ law.
Coverage Details
Total News Sources20
Leaning Left4Leaning Right2Center7Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
L 31%
C 54%
15%
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