On June 1, the Illinois General Assembly passed a bill that, if enacted, will delay the effective date of the Interchange Fee Prohibition Act by one year, from July 1, 2025, to July 1, 2026.
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On June 1, the Illinois General Assembly passed a bill that, if enacted, will delay the
effective date of the Interchange Fee Prohibition Act by one year,
from July 1, 2025, to July 1, 2026.
The law prohibits financial institutions, card networks, and
processors from assessing interchange fees on the tax and gratuity
components of credit and debit card transactions if the merchant
informs the acquirer bank or its designee of the tax or gratuity
amount during the authorization or settlement process. The Act also
prohibits covered entities from altering or manipulating
interchange fee calculations on the non-tax or non-gratuity portion
of a transaction to circumvent the fee prohibition. Additionally,
it bars the use or transfer of transaction data for any purpose
other than processing the transaction or complying with law, and
provides that violations constitute a violation under the Illinois
Consumer Fraud and Deceptive Business Practices Act.
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