EPC Releases Statement on Illinois Credit Card Chaos Law Hearing

Date: October 22, 2025
Media Contact:
Nick Simpson
Nick@electronicpaymentscoalition.org

WASHINGTON – Electronic Payments Coalition (EPC) Executive Chairman Richard Hunt issued the following statement after Illinois’ community banks and local credit unions presented oral arguments against a new state law creating a carveout for Illinois merchants, residents and visitors from the safe, secure, global credit and debit processing system in use today: 

This reckless law threatens every consumer and small business in Illinois with higher costs and fewer fraud protections. It must be struck down in the courts and fully repealed by the General Assembly before unleashing credit card chaos at checkout counters statewide. Today’s court arguments made it undeniably clear: this deeply flawed, experimental law puts the efficiency and benefits of our financial system at serious risk.

NOTE: The OCC, an independent federal regulator tasked with ensuring banks operate in a safe and sound manner, said the new Illinois law is an “ill-conceived, highly unusual, and largely unworkable state law that threatens to fragment and disrupt this efficient and effective system.” The OCC continued by saying the new law, which it called unlawful, would result in “higher fees, reduced services, and weakened fraud protection.” Additionally, an EPC study found the largest national corporate mega-stores will be the main beneficiaries of the law, which carves tax and tip out of credit card interchange. According to the report, the top 10 largest retailers – Amazon, Walmart, Home Depot, Verizon, Apple, AT&T, Costco, CVS, Walgreens, and Kroger – will receive 21.4 percent of the savings. The remainder of any supposed savings will be split among approximately 1.3 million small businesses in Illinois and will be a wash after factoring in the operational costs and system upgrades associated with implementing the new system.