Illinois governor signs bill, delays implementation for state interchange act

Illinois Gov. J.B. Pritzker signed legislation Monday delaying implementation of the state’s Interchange Fee Prohibition Act (IFPA) by one year. The new deadline is July 1, 2026. America’s Credit Unions, the Illinois Credit Union League, and other financial services organizations strongly oppose the bill, which would ban financial institutions 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.

The bill passed the state’s General Assembly earlier this month with strong majorities (103-9 in the House, 52-4 in the Senate). At that time, America’s Credit Unions Chief Advocacy Officer Carrie Hunt stated both organizations “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.”

“Credit unions across Illinois applaud Governor Pritzker for his swift action in signing House Bill 742, extending the effective date of the Interchange Fee Prohibition Act,” said Ashley Sharp, senior vice president of state advocacy and legislative Counsel for the Illinois Credit Union League. “While litigation challenging the law proceeds, it is imperative to provide relief to credit unions, local banks, Main Street businesses and consumers throughout the state of Illinois – all who stand to be negatively impacted by this law.”

The U.S. District Court for the Northern District of Illinois granted relief from the IFPA 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.