SPRINGFIELD – Illinois lawmakers have decided to delay a ban on “swipe fees” for another year as bankers are locked in a court battle with the state over the ban.

Lawmakers passed the Interchange Fee Prohibition Act last spring as part of the legislative package that enacted the state budget. It prohibits financial institutions from charging fees on the tax and tip portions of credit and debit card transactions. The rest of the transaction, including the price of goods or services, would still be subject to the fees.

The ban was supposed to take effect on July 1, but lawmakers voted with strong bipartisan majorities Sunday morning to pass House Bill 742 to push the ban back until July 2026.

Banking groups filed a lawsuit last August challenging the law on the grounds it superseded fed

See Full Page