spot_imgspot_img

Controversial swipe fee law in Illinois goes to court

(The Center Square) – Illinois is the only state that is moving ahead with a law that limits banks from charging interchange fees on tax and tip revenues, but the law was officially challenged in court Wednesday.

A group of organizations, including the Illinois Bankers Association, asked a federal judge for an injunction blocking the Interchange Fee Prohibition Act from taking effect next year.

Gov. J.B. Pritzker has said the act was the best outcome for Illinois retailers, who will also be capped in the discount they get for collecting and remitting sales taxes.

The Illinois Retail Merchants Association said the law would provide tangible relief to Illinois workers, families and businesses by limiting the fees financial institutions can charge on transactions.

“The U.S. credit card industry will still collect the highest fees in the world, even with the Illinois law in place,” said National Association of Convention Stores General Counsel Doug Kantor. “There is no justification for slowing the Illinois law from taking effect.”

On Wednesday, attorney Charlotte Taylor with the firm Jones Day argued that banks have a right to charge fees.

“They are providing the card holder with a service. They’re going out and marketing their cards to card holders. They’re taking on the liability of credit cards and the state of Illinois is saying that for every 10 cents for every dollar you aren’t going to get paid for that which I think is extreme interference,” said Taylor.

The Office of the Comptroller of Currency, the agent in the U.S. Department of the Treasury that regulates banks, filed a brief that called the new law ill-conceived, highly unusual and largely unworkable.

The Center for Legal Action for the American Free Enterprise Chamber of Commerce also filed an amicus brief. The brief laid out ways Illinois’ law would upend the principles of the National Bank Act of 1863, passed during the Civil War and designed to bring uniformity to the banking system.

The Electronic Payments Coalition said the Illinois law is an example of troubling self-dealing by a state government.

The law is set to take effect July 1, 2025, unless a court steps in and blocks the implementation of the legislation.

DON’T MISS OUT

Be the first to know about the latest news, giveaways, events, and updates from The Black Chronicle!

We don’t spam! Read our privacy policy for more info.

spot_imgspot_img
spot_img

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

RNC sues Georgia counties over election integrity claims

(The Center Square) – The Republican National Committee sued...

Firm tied to voter registration ‘scheme’ goes dark

(The Center Square) – The media and consulting firm...

Saturday in the South for Harris, Trump

Vice President Kamala Harris and former President Donald Trump...

Washington state’s race-based home loan program faces federal lawsuit

(The Center Square) – Four months after the launch...

Illinois voters sounding off on three nonbinding questions

(The Center Square) – One of the three statewide...

Political realignment in 2024 has changed American politics

Vice President Kamala Harris and former President Donald Trump...

Major Wisconsin education spending proposed against backdrop of $4.6B surplus

(The Center Square) – Wisconsin State Superintendent Jill Underly...

More like this
Related

RNC sues Georgia counties over election integrity claims

(The Center Square) – The Republican National Committee sued...

Firm tied to voter registration ‘scheme’ goes dark

(The Center Square) – The media and consulting firm...

Saturday in the South for Harris, Trump

Vice President Kamala Harris and former President Donald Trump...

Washington state’s race-based home loan program faces federal lawsuit

(The Center Square) – Four months after the launch...