Chicago Sun-Times - All | Battle continues over Illinois law to limit credit card fees by Amy Yee
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The article details the ongoing legal fight over Illinois’s first‑in‑the‑nation Interchange Fee Prohibition Act, which would prohibit credit‑card companies from charging “swipe” fees on sales tax and tips and is slated to take effect on July 1. After banks and the Illinois Bankers Association sued to block the law, a federal judge upheld most of it, but the case was sent back to district court by the 7th Circuit after the parties raised new issues tied to a recent Office of the Comptroller of the Currency order that exempts national banks while still covering credit unions and community banks. Industry groups backed by Visa, Mastercard and other banks argue the law creates market uncertainty, while merchants—including the 2Bears Tavern Group, Potash Markets and the family‑run Minyoli restaurant—argue that the fees they currently absorb on taxes and tips significantly cut into thin margins and that the law could lower costs for both businesses and consumers. Both sides claim the law could either cause “chaos” if opposed aggressively or be implemented smoothly if credit‑card firms comply, leaving its ultimate impact on small‑business owners and Illinois consumers uncertain.
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