Credit/Shutterstock
The Illinois General Assembly voted overwhelmingly over the weekend to delay the implementation of the Interchange Fee Prohibition Act (IFPA), granting a one-year reprieve to financial institutions and consumers alike. The legislation now awaits Governor J.B. Pritzker’s signature, which would postpone the law’s effective date to July 1, 2026.
The Defense Credit Union Council (DCUC) and America’s Credit Unions applauded the delay, calling it a critical window to address legal and legislative concerns. The IFPA would prohibit financial institutions from charging or receiving interchange fees on the portion of debit or credit card transactions related to taxes and gratuities, a change that credit unions argue would threaten their ability to provide affordable services.
Recommended For You
“For credit unions, interchange fees are not a profit center — they help fund the essential infrastructure that keeps the payments system secure and functional,” DCUC said in a statement.
DCUC Chief Advocacy Officer Jason Stverak added, “Lawmakers should be very clear-eyed about who this law benefits — and who it harms. This is not about consumer protection; it’s about increasing the profit margins of the largest retailers at the expense of community-based financial institutions.”
DCUC President/CEO Anthony Hernandez warned, “The IFPA disrupts a secure, reliable payment system and threatens to pass the burden onto consumers through reduced services, fewer protections and higher costs. We urge the General Assembly to do what’s right and repeal the IFPA in full.”
America’s Credit Unions Chief Advocacy Officer Carrie Hunt echoed that sentiment, thanking the Illinois Credit Union League for its leadership.
“We strongly support this delay so that credit unions in Illinois and across the nation can get needed clarity on whether this ill-advised law will impact how they conduct business.”
The IFPA was initially set to take effect July 1, 2025. The bill to delay passed the Illinois House 103-9 and the Senate 52-4, showing broad bipartisan concern. Legal challenges remain ongoing, with credit unions continuing to seek court relief similar to what federal banks have already received.
DCUC emphasized its continued opposition to “harmful mandates that threaten financial stability and credit unions’ ability to serve their members.”
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
