Illinois General Assembly extends IFPA implementation date

The Illinois General Assembly passed its annual budget over the weekend with language extending the implementation deadline of the Illinois Interchange Fee Prohibition Act (IFPA) by one year, to July 1, 2027. Gov. J.B. Pritzker is expected to sign the legislation soon. 

“The Illinois General Assembly’s extension of the Interchange Fee Prohibition Act’s effective date is a win for consumers and credit unions,” said Scott Simpson, president/CEO of America’s Credit Unions. “However, ongoing litigation and the recent rules from the OCC and NCUA reinforce that more action is needed. Even with an extension, if the law takes effect, Illinois’ state-chartered credit unions and community banks will be at a disadvantage as federal institutions are preempted. As more states consider similar legislation that would introduce even more complexity and chaos into our payments system, this law must be undone. 

"The decision to extend the effective date is a testament to the tremendous combined effort of the Illinois Credit Union League and America’s Credit Unions Advocacy teams. Even before this legislation was filed, Illinois credit unions and their members were already in action across multiple fronts: legal challenges, member education, statewide ad-campaigns, lobbying members of the General Assembly; there was no avenue left untraveled," Simpson added. "As the legal challenge to the IFPA continues and other states consider similar legislation, we will continue tirelessly as a unified movement to protect the financial wellbeing of not just Illinois credit union members but credit union members nationwide.”

"We welcome the Illinois General Assembly's decision to once again delay the IFPA implementation deadline for another year. This reasonable step will protect Illinois businesses and consumers from facing payment chaos in just a month, without interrupting our ongoing legal challenge to IFPA. We remain confident in the strength of our case and look forward to securing permanent relief from this misguided law,” said America’s Credit Unions and the Illinois Credit Union League (ICUL), the American Bankers Association, and Illinois Bankers Association in a joint statement. 

Originally scheduled to become effective July 1 of this year, the IFPA would prohibit collections of interchange for tax and gratuity portions of a card transaction. 

The NCUA is in the process of issuing a final rule confirming federal law preempts the IFPA, following similar actions by the Office of the Comptroller of the Currency. America’s Credit Unions, ICUL, and other organizations filed joint comments in support of the OCC’s actions Friday. 

America’s Credit Unions and ICUL are still involved with the legal challenge against the IFPA, and will continue efforts in light of the new effective date and the rules from NCUA and OCC.