Electronic Payments Coalition Executive Chairman Richard Hunt issued the following statement after the Illinois General Assembly passed a delay of the IFPA:
“The General Assembly delayed credit card chaos for every state-chartered bank, credit union, small business and cardholder in Illinois. A delay, however, is far from a fix. The only true solution is a full repeal of this draconian law.
“Even though the law has yet to take effect, it is already costing Illinois taxpayers who are paying to defend the law in court despite it clearly being preempted by federal banking regulations and acts.
“Make no mistake, the chaos and litigation which has ensued since the law was passed is completely self-inflicted.
“This should be a red flag for every state legislature considering kowtowing to the corporate mega-stores – at the expense of state chartered financial institutions, their customers and small businesses – by upending our safe, secure, efficient global payment system. Congress, too, should take note of the dangers caused by passing legislation placing new mandates on our trusted payment systems without hearings, debate or review.”
NOTE: The Illinois General Assembly last year passed the IFPA, legislation carving the tax and tip portion of a payment from interchange, in the middle of the night over Memorial Day weekend last year without any debate or hearing on the impact the carveout would cause – or if a system existed to facilitate this first-of-its-kind change.