Illinois Gov. JB Pritzker today signed into law a bill that extends by a year the effective date of a first-of-its-kind state law restricting interchange fees.
The Illinois Interchange Fee Prohibition Act, or IFPA, bans banks, 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. The law was scheduled to take effect on July 1, but the Illinois General Assembly voted last month to push back the effective date to July 1, 2026. Pritzker’s signature makes the new deadline official.
The American Bankers Association, Illinois Bankers Association and other groups have challenged the IFPA in U.S. District Court for the Northern District of Illinois, arguing the law violates multiple federal statutes.
