Advocacy That Fuels Progress
As the leading trade association representing the payments and fintech industries, ETA advocates before federal, state, and Canadian policymakers.
We shape public policy to advance our members' interests while keeping them informed of legislative and regulatory developments impacting the industry.
The Illinois General Assembly needs to take immediate action to repeal the Interchange Fee Prohibition Act (IFPA) – or it will hurt the state’s own banks, credit unions and small businesses.
The IFPA limited the amount banks and credit unions could charge to process credit and debit card transactions.
A U.S. District Court judge recently concluded that the statute cannot be applied to approximately 90% of transactions in the state, effectively gutting the measure.
But the court also held Illinois’ banks and credit unions must comply, putting them at a unique disadvantage.
EXEMPT FROM IFPA
Federally chartered banks such as:
Bank of America | BMO Harris | JPMorgan Chase | PNC | Wells Fargo
Out of state banks such as:
- Associated Bank (Wisconsin)
- Farmers and Merchants Bank (Indiana)
- UMB (Missouri)
- Whitaker Bank (Kentucky)
- Northwest Bank (Iowa)
MUST COMPLY WITH IFPA
Illinois Chartered Banks such as:
Illinois Bank and Trust | First State Bank of Illinois | State Bank of Cherry | Chesterfield State Bank | DuQuoin State Bank | State Bank of Davis | Peoples State Bank of Colfax
Credit Unions such as:
- Illinois Educators Credit Union
- Midwest Coalition of Labor Credit Union
- Chicago Fireman’s Association Credit Union
- HealthCare Associates Credit Union
- Illinois State Credit Union
- CEFCU
- Consumers Credit Union
- Credit Union 1
- Scott Credit Union
The Court’s ruling not only prevents Illinois banks and credit unions from receiving revenue, it puts them at risk of incurring a $1,000 fine per transaction if they make any mistakes in applying the statute – fines large, federally chartered banks and banks from other states won’t face.
HIGHER COSTS FOR SMALL BUSINESSES
The IFPA not only discriminates against Illinois’ own banks and credit unions, but the law will cost Illinois’ small businesses money. The state’s small businesses will need to spend hundreds of dollars for equipment, testing and reprogramming to comply – time and money that they simply can’t afford – for a reduction in interchange of about $6 a year.
No matter how you slice it, Illinois’ banks, credit unions, and small businesses lose
This policy will make it more burdensome and expensive to open and operate a small business in Illinois and will cause confusion for merchants at the point of sale because small businesses will have to treat different transactions differently. Illinois is the only state in the country to adopt this kind of law, and the IFPA should be repealed.
Electronic Transactions Power the Economy
Electronic transactions enable small businesses to sell to more customers, grow their market, and optimize how they operate – helping grow our economy and support millions of jobs.
Whether you tap, shop online or use person-to-person payments to send money to friends and family, electronic transactions give consumers safe, secure, and reliable payment options with benefits like fraud protection, rewards and cash back.
The industry, represented by the Electronic Transactions Association, includes payments networks, financial institutions, transaction processors, mobile payments products and services, payments technologies, software providers, and hardware suppliers.