In a Blow to the Banks, Illinois’ Pioneering Swipe Fee Law Survives First Legal Challenge

In a blow to the banks, Illinois’ pioneering swipe fee law survives first legal challenge

A federal judge has upheld a first-of-its-kind Illinois law that protects consumers and retailers from paying so-called credit card “swipe fees” on taxes and tips.

Retail advocate: Swipe fees ruling is largest Main St. 'relief package' in Illinois

(The Center Square) – A retail business advocate says a federal judge’s ruling to uphold the Interchange Fee Prohibition Act paves the way for Main Street Illinois to experience major relief, but a banking advocate says the law could slow…

Illinois Statute’s Landmark Curbs on Credit Card Swipe Fees Survives Lawsuit

A Jones Day and Skadden, Arps, Slate, Meagher & Flom-represented coalition of banking and financial institutions had challenged the law, which was the first of its kind in the United States, arguing that the restrictions conflict with the National Banking Act, which authorizes banks to charge customers noninterest charges and fees. But U.S. District Judge Virginia Kendall backed the restrictions, repeatedly stressing in a 47-page decision that b…

Judge backs Illinois law on card fees

A U.S. judge ruled that federal bank law doesn’t preempt an Illinois effort to ban card interchange fees on sales tax and tips. Bank groups vowed to appeal.

IL can limit credit, debit ‘swipe fees,’ judge rules; Banks to appeal – Legal Newsline

U.S. District Judge Virginia Kendall acknowledged the federal Office of the Comptroller of the Currency has called Illinois' law bad policy. "That may well be true," she said. But in this case, the evidence indicates federal law doesn't prevent Illinois from using state law to regulate interchange fees.

Federal judge keeps in place key parts of Illinois’ landmark law banning some credit card swipe fees

Passed in 2024 and set to take effect this July, the law bans certain so-called swipe fees on the tax and tip portions of customers’ bills, with a goal of lowering how much credit card companies can charge retailers.