Overview
- Lawmakers voted Monday to delay the Interchange Fee Prohibition Act from taking effect on July 1, 2026 to July 1, 2027, extending uncertainty about enforcement.
- The law would bar banks, credit unions and card companies from collecting interchange or “swipe” fees on the sales-tax portion of transactions and on card-paid tips while allowing fees on item sale prices.
- The measure is tied up in litigation after a federal judge upheld parts of the law, the plaintiffs appealed, and the 7th U.S. Circuit Court of Appeals returned aspects of the case to district court for further proceedings.
- The Office of the Comptroller of the Currency has formally questioned Illinois’s authority to limit fees charged by nationally chartered banks, a federal argument central to industry lawsuits.
- Banking and payments groups welcomed the delay as needed to avoid payment disruption, while retailers and small-business advocates condemned it as protection for big financial firms and warned consumers could keep seeing different cash and card prices.