SPRINGFIELD – The Illinois Retail Merchants Association (IRMA) released the following statement after a judge ruled that federal law preempts the state’s Interchange Fee Prohibition Act, which prohibits banks and credit card companies from charging swipe fees on the tax and tip portion of transactions when a consumer pays with a credit or debit card:
“After the Interchange Fee Prohibition Act was initially upheld, banks, credit card companies, and processors turned to the Trump Administration to secure an unprecedented rule change designed to undercut Illinois law and block financial relief for businesses and consumers. While today’s ruling is a temporary setback, the judge’s opinion highlights serious procedural and substantive concerns about how the federal rule was adopted and its scope, so this issue is far from settled,” said Rob Karr, president and CEO of the Illinois Retail Merchants Association. “We remain committed to pursuing meaningful swipe fee relief for consumers, neighborhood retailers, restaurants, and bars, and are actively evaluating additional legal avenues to protect them.”
About the Illinois Retail Merchants Association (IRMA)
One of the largest state retail organizations in the United States, IRMA serves as the voice of retail and the business community in state government. Founded in 1957, IRMA represents more than 23,000 stores of all sizes and merchandise lines. From the nation’s largest retailers to independent businesses in every corner of the state, merchants count on IRMA to fight for the best possible environment in which to do business in Illinois.