Illinois in Focus Daily | October 7th, 2024 - Federal Agency Files Against Illinois’ Swipe Fee Prohibition for Tax and Tips

Illinois in Focus

Several groups have filed legal challenges against an Illinois law regarding interchange fees. The Interchange Fee Prohibition Act doesn’t ban or restrict credit card swipe fees, but it limits banks from charging interchange fees on tax and tip revenues. The law, which was backed by the Illinois Retail Merchants Association, was the first such statute in the country. Banking trade groups argued in court that the law would “throw well-operating payment card systems into chaos.”