The Electronic Payments Coalition has initiated a significant advertising campaign against a new Illinois law concerning credit and debit card processing. The coalition's effort comes as the law faces legal challenges in federal court. According to the coalition, the legislation will lead to complications for consumers and businesses in Illinois.
The Office of the Comptroller of the Currency (OCC) recently supported opposition to this law by filing an amicus brief on behalf of the Illinois Bankers Association and Illinois Credit Union League. The OCC described the law as "ill-conceived, highly unusual, and largely unworkable," expressing concerns about increased fees, reduced services, and diminished fraud protection.
A study conducted by the EPC indicates that large national retailers would benefit most from this legislation. The report estimates that 40 major retailers would absorb nearly 40 percent of an expected $118 million reduction in interchange fees. Among these are Amazon, Walmart, Home Depot, Verizon, Apple, AT&T, Costco, CVS, Walgreens, and Kroger. Smaller businesses across Illinois may find any potential savings offset by new operational costs.
Randy Hultgren of the Illinois Bankers Association criticized the legislation: “Left unchecked, the Interchange Fee Prohibition Act will wreak havoc at the register every time people use their credit or debit card in Illinois." Tom Kane from the Illinois Credit Union League added: “Not only do we need a repeal of the law here in Illinois...this nonsensical policy will be fought with every tool available.”
Richard Hunt of the Electronic Payments Coalition emphasized public awareness: “Our goal is to ensure every consumer...is aware of the credit card chaos this new law will cause if allowed to go into effect next year.” The campaign includes diverse media formats such as print and digital ads.
For more information on this topic or to learn about efforts for national data security standards visit www.guardyourcard.com/Illinois.