CHICAGO ( Capitol News Illinois ) -

Article Summary

A federal judge this week heard oral arguments in a case challenging Illinois’ first-in-the-nation law prohibiting financial institutions from charging fees on the tip and tax portions of debit and credit card transactions.

The “Interchange Fee Prohibition Act” was folded into Illinois’ Fiscal Year 2025 budget package, which was pushed through by Democrats who control the General Assembly in May 2024.

Under the law, Illinois would be the first jurisdiction in the world to ban the fees, which opponents claim would cause “credit card chaos.” But proponents say it’s a pro-consumer move that would prevent the fees on taxes and tips from being passed onto customers.

Amid an opposition campaign and an ongoing lawsuit filed by banks and c

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