SPRINGFIELD – 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.
Illinois recently passed 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. Credit card companies and financial institutions currently charge the retailers and restaurants a fee when consumers use cards, based on the total transaction amount of the goods, tax and any tip. Credit card companies are still able to charge the interchange fee for the purchase price of the product. The Interchange Fee Prohibition Act will lower the amount that credit card companies can charge retailers and save businesses and consumers millions of dollars a year.
Key findings of the poll, which was taken September 6 through September 11, include:
- 86% of voters agree that it is unfair for banks and credit card companies to charge businesses swipe fees on the sales tax they collect for the state of Illinois and local government.
- 82% agree that it is unfair to workers and businesses to charge swipe fees on top of their tips.
- 84% of voters agree that excessive swipe fees charged to businesses end up being paid by consumers in higher prices.
The survey found support is broad-based and strongly backed by voters across the state and political spectrum. Additionally, the majority of voters disagree with the false assertion by banks and credit card companies that the swipe fee prohibition will hurt consumers by limiting their ability to use credit cards and shortchanging them on credit card rewards points.
“The idea that banning swipe fees would harm consumers is completely false, and this poll shows that voters see through those claims. The Interchange Fee Prohibition Act will provide tangible relief to Illinois families and retailers of all sizes and types by limiting the fees financial institutions can charge on the sales and excise tax and tips portion of transactions,” said Rob Karr, president and CEO, Illinois Retail Merchants Association. “It’s no surprise that a majority of Illinois voters support this commonsense measure to keep costs low for consumers and help small businesses save money, grow, and create jobs.”
Rob Karr was joined by retail business owners Pamela Frazier, president and CEO of All In One Laundry Center & Services, and Gordon Davis, owner and founder of Whimsy Tea Company, on Wednesday, Sept. 25, for a press conference to speak about the poll findings and express their support for banning the swipe fees. Pictures from the press conference are shown below.
About the Illinois Retail Merchants Association (IRMA)
One of the largest state retail organizations in the United States, IRMA serves as the voice of retailing and the business community in state government. Founded in 1957, IRMA represents more than 23,000 stores of all sizes and merchandise lines. From the nation’s largest retailers to independent businesses in every corner of the state, merchants count on IRMA to fight for the best possible environment in which to do business in Illinois. For more information, visit https://irma.org
