Judge Upholds Swipe Fee Law

SPRINGFIELD — The Illinois Retail Merchants Association is praising a court ruling that upheld the state’s Interchange Fee Prohibition Act, a law aimed at reducing credit and debit card swipe fees charged to businesses.

The ruling allows Illinois to move forward with a first-in-the-nation law that prohibits banks and credit card companies from charging swipe fees on the tax and tip portions of transactions when customers pay with a credit or debit card.

Illinois Retail Merchants Association President and CEO Rob Karr called the decision a major victory for businesses and consumers, saying the law will save millions of dollars annually and help ease rising costs faced by working families and small businesses.

The association also credited Illinois Attorney General Kwame Raoul for defending the law in court and thanked state leaders for their support. IRMA says it looks forward to working with Governor JB Pritzker, Senate President Don Harmon, House Speaker Emanuel “Chris” Welch, and members of the General Assembly as the law moves toward implementation.

The Interchange Fee Prohibition Act is scheduled to take effect July 1, 2026.

Founded in 1957, the Illinois Retail Merchants Association represents more than 23,000 retail stores across the state, ranging from small independent businesses to large national retailers.