Illinois General Assembly passes extension for interchange bill implementation date

The Illinois General Assembly passed legislation over the weekend extending the implementation of the Interchange Fee Prohibition Act (IFPA) by one year to July 1, 2026. The House passed with a 103-9 vote, and the Senate passed with a 52-4 vote, significant majorities that show credit union and financial institution advocacy made an impact. The bill extending implementation now goes to Gov. J.B. Pritzker for his signature, and if signed will provide additional time for the legal challenges and legislative efforts for repeal.

“We strongly support this delay so that credit unions in Illinois and across the nation can get needed clarity on whether this ill-advised law will impact how they conduct business,” said America’s Credit Unions Chief Advocacy Officer Carrie Hunt. “Thank you to the Illinois Credit Union League and other partners in this endeavor to help the small businesses and consumers who will ultimately suffer if this law goes into effect.”

The IFPA would ban financial institutions, payment networks, and other entities from charging or receiving interchange fees in Illinois on the portion of a debit or credit card transaction attributable to tax or gratuity. It was scheduled to go into effect July 1 of this year.  

The U.S. District Court for the Northern District of Illinois granted relief from the law to banks and savings associations in December. America’s Credit Unions, the Illinois Credit Union League, and other organizations filed a brief in January explaining why credit unions should also be granted relief, and a reply brief in support of a motion for summary judgment in May.