This decision came after legislative approval of a minor amendment that was passed in both chambers over the weekend. Although the state governor has not yet confirmed his stance on the amended bill, the alignment between the executive and legislative branches under Democratic control suggests strong support.
The Interchange Fee Prohibition Act, enacted in 2023, is aimed at reducing costs associated with card-based payments and has been supported by restaurant and retail industry groups. These businesses argue that paying fees on amounts collected for taxes and tips unfairly increases their expenses.
Industry opposition to the law remains strong. Banking and payments sector associations, such as the Electronic Transactions Association (ETA) and the Electronic Payments Coalition, have openly endorsed the extended timeline. According to representatives from the ETA, this additional time could help resolve legal disputes that might ultimately lead to the repeal of the legislation.
Legal challenges against the law are still pending. In August 2024, several financial trade groups, including the Illinois Bankers Association and the American Bankers Association, filed a lawsuit in federal court seeking to overturn the legislation. A US District Court judge issued a preliminary injunction in December that temporarily blocks enforcement of the law for national and out-of-state banks as well as federal savings associations.
As a result, most card transactions in the state are currently not subject to the statute. Officials from the ETA have expressed concerns that if only part of the law is upheld, it could place Illinois-chartered financial institutions at a competitive disadvantage—a scenario that, according to them, was not intended by the state legislature.