IFPA delay result of consistent, state-level advocacy

Passing a one-year delay in the effective date of the Illinois Interchange Fee Prohibition Act (IFPA) over the weekend resulted from relentless state advocacy by the Illinois Credit Union League (ICUL), Illinois credit unions, and America’s Credit Unions. Without the delay, the rule would have taken effect July 1, penalizing institutions that do not remove the tax/gratuity portions of any card transaction from the interchange calculation. 

The wide range of advocacy efforts delivered significant concerns over compliance, consumer protections, network operations, and potential disruptions to secure electronic payment systems with policymakers.  

"The Illinois General Assembly’s decision to extend the misguided IFPA’s effective date is a testament to the tremendous combined effort of the Illinois Credit Union League and America’s Credit Unions Advocacy teams," said Scott Simpson, America’s Credit Unions president/CEO. "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. 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.”

“Credit unions strongly support efforts to protect consumers and maintain a safe, reliable, and efficient payments system,” said Libby Calderone, ICUL president/CEO. “This extension provides much-needed certainty to preserve the strength and integrity of the electronic payments infrastructure that Illinois families depend on every day. A fragmented payment system would create unnecessary costs, confusion, and risk for consumers, businesses, and financial institutions alike.”

“We are grateful to House Speaker Welch and Senate President Harmon for their leadership and support in advancing this important extension,” said Ashley Sharp, ICUL’s chief legal officer and senior vice president of state advocacy. “Their commitment to ensuring Illinois consumers continue to benefit from a secure and dependable payment system has been instrumental. This extension provides policymakers and stakeholders the opportunity to continue evaluating the significant legal, operational, and consumer implications associated with the law.”

This is the second one-year delay ICUL has secured since the bill was signed into law in 2024. The delay means credit unions and other financial institutions will not have to make the changes needed to comply while policymakers, regulators, and the courts take further steps.   

ICUL and America’s Credit Unions worked together putting credit union voices at the center of an ad campaign appearing in markets throughout May across the state, and an earlier joint ad in the Chicago Cubs Opening Day edition of USA Today.  Scott Credit Union President/CEO Frank Padak also appeared in a TV ad explaining the negative consequences for his community.