WASHINGTON, D.C. – The Electronic Payments Coalition (EPC) today renewed its call for Illinois to repeal its Interchange Fee Prohibition Act after merchant groups filed suit challenging federal efforts to block the law, extending a legal fight now in its third year.
The Office of the Comptroller of the Currency (OCC) has opposed the Illinois law since 2024 and issued an order earlier this year concluding federal law preempts it. The law bans interchange on the tax and tip portions of card transactions, requiring banks, credit unions and payment networks to separate those amounts from millions of everyday purchases. EPC warns the resulting disruption would raise costs and create confusion for Illinois businesses and consumers alike.
“This reckless, misguided policy has drawn bipartisan opposition from federal banking regulators under both the Biden and Trump administrations. It threatens to disrupt the payments system, drive up costs and create chaos for millions of Illinois businesses and consumers. It’s time for Illinois to stop playing politics, stop delaying the inevitable and repeal this disastrous law,” said Richard Hunt, Executive Director of EPC.
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