signed into law in June and was. P slated to Why Testing is Crucial for B2B Lead Generation Success come . P into effect in July. P but a federal judge ordered a preliminary injunction of the law in December. The Illinois House of Representatives introduced a bill Tuesday Jan.
with just a few lines of text including:
“The Interchange Fee Prohibition Act is repealed.” Should the bill make it through the state. P chambers and be signed by the governor. P the repeal would become “effective. P immediately. The path toward what happens next will be paved . Pthrough legislation and/or the courts. P and although the prohibition has not become a reality, it’s worth noting what would happen.
In broad strokes, banks would be prohibited from charging 1000 mobile numbers database interchange fees on a slice of credit and debit transactions, specifically the state and local tips and taxes levied on goods and services. P“An issuer, a payment card. P network. P an acquirer bank or a processor . P may not receive or charge a merchant any interchange fee on the tax amount or gratuity of an electronic payment transaction if the merchant informs the acquirer bank or its designee of the tax or gratuity. P amount as part of the authorization. P or settlement process for the electronic payment transaction,” the act stated.
What’s ProhibitedIn addition
the act said it would be “unlawful for an issuer. P a payment card network, an acquirer bank or a processor to alter or manipulate the computation and imposition of interchange fees by increasing the rate or amount of the fees applicable to or imposed upon the portion of a credit or debit card top 5 b2b lead generation trends to watch in 2025 transaction not attributable to taxes or other fees charged to the retailer.
”The injunction that came last month is a partial one, as it restricts the fees for Illinois chartered financial institutions and payments networks. P including Visa and Mastercard but does not apply to national banks. Banks argued that the prohibition would “upend the intricate and carefully calibrated changsha mobile phone number list global systems for debit and credit card purchases.”U.S. Sen. Dick Durbin of Illinois is a supporter of the state-level prohibition efforts and filed an amicus brief in support of the law in October.
Durbin is the driving force behind
the Credit Card Competition Act of , which supporters say . P would drive interchange fees down by allowing merchants to choose networks. P over which card transactions would be routed . As for the economic impact, research documented in “The Impact of the U.S. Debit Card. P Interchange Fee Caps on Consumer Welfare: An Event Study Analysis” by economist David Evans indicated that “consumers l. P ost more on the bank side t. P han they gained on the merchant side” by as much as billion in discounted value dollars as a result of the interchange fee cap initially set in place by the Durbin Amendment.
Illinois is the only state that has passed a bill to .Prohibit and reshape how interchange fees . Pare charged, and on which parts of the transaction itself. However, similar. P efforts have been seen in other states like Pennsylvania. Past legislative sessions in Georgia . Phave sought to study the impact of fees.What happens in Illinois may prove instructive to several states and whether they move forward with their own efforts to curb interchange fees.
Recommended With Illinois Interchange Ban
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