The court’s order, announced in a press release by the lawsuit’s co‑plaintiffs, confirms that the Illinois Interchange Fee Prohibition Act (IFPA) cannot be forced on federal credit unions, aligning them with the nationwide injunction previously applied to all federally chartered financial institutions and payment‑network operators.
The plaintiffs – the Illinois Bankers Association, the Illinois Credit Union League, the American Bankers Association and America’s Credit Unions – hailed the decision as a safeguard for a uniform national electronic‑payments framework, warning that the IFPA would create “payment chaos” for Illinois consumers and businesses if enforced.
The IFPA, signed into law in June 2024, bans banks and credit‑card issuers from imposing interchange (or “swipe”) fees on the sales‑tax and tip portions of card transactions. The law was originally slated to take effect on July 1, 2025, but the Illinois legislature has postponed implementation twice, first to July 1, 2026 and then to July 1, 2027.
Earlier, on June 1, the same district court ruled that the IFPA could not be applied to national banks, federal savings associations, payment networks and certain other financial‑services providers, a decision the plaintiffs said was an “important step toward preserving a nationwide framework for electronic payments.”
In a joint statement following the September ruling, the plaintiffs urged state lawmakers to repeal the IFPA in full, arguing that only state‑chartered institutions – particularly those based in Illinois – would be compelled to comply when the law finally takes effect next July.