Illinois Lawmakers Again Delay Card Fee Law
The delay follows court fights and federal preemption efforts, and opponents say the law could affect 1.3 million merchants, the ABA said.
- On Monday, Illinois lawmakers voted to delay the Interchange Fee Prohibition Act until 2027, marking the second one-year postponement for the statute amid ongoing legal challenges.
- The Office of the Comptroller of the Currency is seeking to preempt the law, arguing earlier this year that Illinois cannot legally limit swipe fees for federally chartered banks.
- Aimed at providing financial relief for retailers, the law prohibits fees on sales tax and tips, affecting an estimated 1.3 million Illinois merchants paying 1-to-3% in card-based transaction fees.
- Following the U.S. 7th Circuit Court of Appeals' decision, Chief Judge Virginia M. Kendall issued a permanent injunction Monday in the Northern District of Illinois.
- Illinois Retail Merchants Association CEO Rob Karr criticized the delay as protecting 'big banks,' while Electronic Payments Coalition Executive Chairman Richard Hunt called for "a permanent solution.
14 Articles
14 Articles
Judge says federal rule blocks IL from banning ‘swipe fees’
Federal law blocks the state of Illinois from prohibiting both banks from outside Illinois and payment card servicers, like Visa and Mastercard, from charging so-called "swipe fees" on sales taxes that are charged or gratuities added on when customers use…
Illinois lawmakers delay credit card swipe fee law – Chicago Sun-Times
Banking associations have sued the state to fight the law. A federal judge upheld parts of the law in February, but the plaintiffs appealed. Plaintiffs include the Illinois Bankers Association, American Bankers Association, America’s Credit Unions and the Illinois Credit Union League. Last month, the 7th Circuit U.S. Court of Appeals sent the case back to a lower court.
Chicago Tribune
union-bulletin.comJudge stops Illinois law banning some credit card fees from taking effect
The judge's move came after Illinois lawmakers decided Monday to again delay implementation of the law prohibiting so-called interchange fees, or swipe fees.
Chicago Sun Times
Illinois lawmakers delay credit card swipe fee law
Illinois lawmakers have voted to delay implementing a state law that limits some credit card fees.The Interchange Fee Prohibition Act was set to take effect on July 1 but was pushed back to July 1, 2027, during the spring legislative session.When customers use credit cards, businesses typically pay credit card companies an interchange fee on each transaction, including sales tax and workers’ tips, that ranges from about 2% to 4%.In 2024, Illinoi…
Controversial credit card swipe fee law in Illinois delayed another year
A controversial credit card law that has been hotly debated in Illinois has been delayed once again amid ongoing legal challenges. The Interchange Fee Prohibition Act, dubbed the “credit card chaos” law by opponents, will now be delayed another year, lawmakers decided in Springfield. The act, which would prohibit banks, credit unions and credit card companies from collecting so-called “swipe fees” on the sales tax portion of transactions, as wel…
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