Springfield Office
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Springfield, Illinois 62701
217-544-1003
Credit card companies collect more than $172 billion in swipe fees from customers and businesses each year. The duopoly of Visa and Mastercard can raise fees without oversight, harming consumers and retailers as they continue to grapple with suborn inflation.
The Illinois Retail Merchants Association has led the way in limiting these fees, working with Gov. JB Pritzker, Senate President Don Harmon, House Speaker Emanuel “Chris” Welch and members of the General Assembly to pass the Interchange Fee Prohibition Act, which prohibits banks and credit card companies from charging swipe fees on the state and local sales tax and tip portion of a sales transaction when the consumer pays with a credit or debit card. This law is the first in the nation to restrict swipe fees and will save businesses and consumers millions of dollars a year.
The effort is widely supported by the public. A recent poll found 74% of Illinois voters support banning interchange fees or “swipe fees” on the tax and tip portion of credit card transactions. The poll of 800 Illinois voters, conducted by Tulchin Research/Impact Research, showed overwhelming public support for the new Illinois law, with respondents agreeing that swipe fees are unfair to businesses and workers and lead to higher prices for consumers.
At the federal level, IRMA has partnered with U.S. Sen. Dick Durbin to advocate for passage of the Credit Card Competition Act. This bipartisan legislation would enhance competition and choice in the credit card network market, pushing fees down and providing relief for consumers and retailers alike.