CHICAGO—America’s Credit Unions said Illinois lawmakers’ decision to delay implementation of the Illinois Interchange Fee Prohibition Act (IFPA) by one year provides critical breathing room for credit unions and other financial institutions while legal challenges to the law continue.
Speaking during a media call Monday, Ann Petros, ACU VP of policy engagement and credit union operations, welcomed the Illinois General Assembly’s approval of legislation extending the law’s effective date to July 1, 2027, saying the move recognizes that courts need additional time to address the significant legal questions raised in the industry’s lawsuit challenging the measure.
“The biggest advantage is credit unions are not under quite as much pressure to figure out what is going to happen in 30 days,” Petros said.
She noted that while the delay eases immediate compliance concerns, the legal fight is far from over and will continue before the U.S. District Court for the Northern District of Illinois and ultimately the Seventh Circuit Court of Appeals.
Petros credited the Illinois Credit Union League for its advocacy efforts, saying the organization worked tirelessly with lawmakers and credit union members to oppose the law. She added that America’s Credit Unions will continue pursuing both its legal challenge and efforts to ultimately repeal the IFPA, which would prohibit interchange fees from being collected on the tax and gratuity portions of card transactions.
Petros also said the association is closely watching developments in Colorado, where a similar interchange measure awaits action by Gov. Jared Polis, as well as pending action by NCUA on an interim final rule addressing federal preemption of state laws affecting non-interest charges and fees. Such a rule could have implications for both the Illinois law and any similar legislation enacted in Colorado.
The Illinois Retail Merchants Association fired back at the General Assembly's decision.
"For the second year in a row, Illinois lawmakers chose to protect the bottom line of big banks, credit card companies and payment processors over ensuring meaningful financial relief for consumers, neighborhood retailers, restaurants and bars. At a time when lawmakers claim to be focused on improving affordability and supporting community businesses, this action stands in sharp contrast to their words. The fight against onerous swipe fees is not over, and we remain hopeful the courts will ultimately uphold this vital relief package," stated Rob Karr, president and CEO of the Illinois Retail Merchants Association.