Illinois lawmakers extended the implementation date for the Interchange Fee Prohibition Act by 12 months early Sunday to July 1, 2026.
Groups opposing the IFPA, the first law of its kind passed by any state, argued the law would cause “widespread economic disruption” and that it would place an undue burden on merchants, especially small merchants with limited technological resources, to comply with the law.
The IFPA, originally scheduled to go into effect in 29 days, July 1, requires merchants to pay interchange on the pre-tax amount of a purchase and tips. In return, the state will cap what merchants earn for collecting sales tax on its behalf at $1,000 per month. The state pays merchants 1.75% of the sales tax collected per month.