Merchants Coalition Urges Withdrawal of Credit Union Swipe Fee Rule

The Merchants Payments Coalition is pressing the National Credit Union Administration to withdraw a rule targeting Illinois’ ban on swipe fees applied to sales tax and tips. The coalition says the agency’s rule is legally flawed and could raise prices for Illinois consumers. At issue is the Illinois Interchange Fee Prohibition Act, which would stop card networks and banks from charging swipe fees on portions of a transaction that go to taxes or gratuities. The law had been set to begin July first of this year, but lawmakers pushed the effective date to July first, 2027. MPC also says the rule skipped required public notice and comment.