(The Center Square) – A controversial Illinois law affecting credit cards has prompted opinion polls, lawsuits and an array of opinions.
The Interchange Fee Prohibition Act was signed into law by Gov. J.B. Pritzker and is set to take effect in July 2025, making Illinois the first state to exempt taxes and tips from interchange fees.
Rob Karr, the president of the Illinois Retail Merchants Association, said their poll shows Illinoisans are in favor of the law.
“Eighty-six percent of voters agree that it is unfair for banks and credit card companies to charge businesses swipe fees on the sales taxes they collect for the state of Illinois and units of local government,” said Karr.
Karr said 82% of those polled said that it is unfair to workers and businesses to charge swipe fees on tips, and the notion that a card would have to be swiped twice is not true.
“Think about it, it’s laughable on its face,” said Karr. “When you go to a place that does tips, does your card get swiped twice, no. The server takes it, swipes it, brings it back, then you put in the amount.”