Illinois Governor J.B. Pritzker has signed legislation that delays the implementation of the Interchange Fee Prohibition Act until July 1, 2026. This act is currently under legal challenge in federal courts, with a partial preliminary injunction protecting federally chartered and national institutions but leaving Illinois banks, credit unions, small business owners, and consumers vulnerable.
Ben Jackson, Executive Vice President at the Illinois Bankers Association, expressed gratitude for the governor's decision. "We thank Governor Pritzker and his staff for their attention to this important issue that will impact millions of Illinoisans," he said. Jackson emphasized the need to repeal the law to protect local financial institutions and consumers from disruptions.
The Illinois Bankers Association and the Illinois Credit Union League are among those challenging the law since last August. A court ruling in December exempted national banks from compliance but required state-chartered banks and credit unions to adhere to it.
Ashley Sharp of the Illinois Credit Union League praised Governor Pritzker's action: “Credit unions across Illinois applaud Governor Pritzker for his swift action in signing House Bill 742." She highlighted the importance of providing relief while litigation continues.
The Office of the Comptroller of the Currency criticized the IFPA as "an ill-conceived" law likely to increase fraud risk and constrain consumer services.
Jerry Peck from the Community Bankers Association of Illinois also commended Governor Pritzker: “Thank you, Governor Pritzker, for signing HB 742." He warned about potential negative impacts on electronic payments if the law were implemented without delay.
Small businesses are expected to face challenges due to this law while large retailers may benefit significantly. Lou Sandoval from the Illinois Chamber of Commerce called for a repeal: “The Illinois General Assembly took a step in the right direction by delaying."
Larry Ivory from the Illinois State Black Chamber of Commerce stated that delaying implementation provides necessary protection for small business owners. Jaime di Paulo from the Illinois Hispanic Chamber of Commerce echoed similar concerns about potential adverse effects on small businesses.
For more information on this issue, visit guardyourcard.com/Illinois.