ILLINOIS SWIPE FEE BAN FACES FEDERAL PREEMPTION

The U.S. Treasury’s Office of the Comptroller of the Currency has announced plans to override Illinois’ new Interchange Fee Prohibition Act. The state law, set to begin July 1, would stop banks and credit card companies from applying swipe fees to the tax and tip portions of credit or debit card transactions. Rob Karr, president of the Illinois Retail Merchants Association, criticized the decision, arguing that it sides with financial institutions at the expense of businesses and shoppers seeking savings. The federal intervention could reshape how swipe fees are handled across Illinois, pending further developments.