NAPERVILLE, Ill.–The Illinois Credit Union League and the Illinois Bankers Association joined in co-authoring an op-ed that argued against the proposal on credit and debit card purchases.
Authoring the op-ed were ICUL Senior Vice President Ashley Sharp and Illinois Bankers Association EVP Ben Jackson, who said there will be negative consequences as the result of a carve out related to tax and tip processing for credit or debit card purchases would have for consumers and small businesses.
Response to Budget Deal
The op-ed was written in response to the Interchange Fee Prohibition Act, passed as part of the recent Illinois state budget deal, will impact financial institutions across Illinois, and more importantly, the members and customers that Illinois financial institutions serve.
The Illinois Credit Union League and Illinois Bankers Association also led a veto request letter - along with the Community Bankers Association of Illinois, America’s Credit Unions, Card Coalition, Electronic Payments Coalition, and Innovative Payments Association – to Illinois Gov. J.B. Pritzker outlining their concerns.
The Specifics
Specifically, the joint letter spoke to consumer privacy concerns, costs to small retailers, the “untested nature” of the processing provision and the “potential burden consumers would face by having to possibly run their card multiple times per transaction or pay the tax and gratuity in cash.”
The league noted the provision in question would exempt the tax and tip portion of a purchase from interchange payments, which “banks and credit card networks use to fund security measures and consumer reward programs.”
The full op-ed can be found here.
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