The Interchange Fee Prohibition Act (IFPA), signed into law in June of 2024 by Illinois Governor J.B. Pritzker, prohibits banks, savings associations, credit union, and others from receiving or charging an interchange fee on the tax and gratuity (tips) portions of debit and credit transactions, as well as placing restrictions on the use or transmittal of electronic payment transactions data. https://bit.ly/4fR4VOZ
The American Bankers Association (ABA) joined the Illinois Bankers Association, America's Credit Unions, and the Illinois Credit Union League in filing a complaint in the U.S. District Court for the Northern District of Illinois challenging the IFPA, seeking to have the state legislation declared preempted by federal banking laws, and as such, unconstitutional in its application. Should this law take effect on July 1, 2025, Martin Kiernan details what exposure financial institutions with customers in #Illinois should be mindful of in light of the #IFPA.