Following a judge largely upholding the Illinois Interchange Fee Prohibition Act (IFPA) last week, America’s Credit Unions, the Illinois Credit Union League and the other plaintiffs filed an appeal with the U.S Court of Appeals for the Seventh Circuit Friday.
The IFPA is scheduled to become effective July 1, and would ban financial institutions, including credit unions, payment networks and other entities, from charging or receiving interchange fees in Illinois on the portion of a debit or credit card transaction attributable to tax or gratuity.
A district court granted relief from the law to banks, savings associations, and out-of-state state-chartered banks in 2024, but last week’s decision granted relief to financial institutions for the data usage provisions of the law, not the interchange fee portion.
The appeal seeks a declaratory judgment that the IFPA is contrary to federal law, as well as an injunction prohibiting state officials from applying or enforcing it.
America’s Credit Unions’ recent Compliance Blog post details what implementation of the IFPA would mean for credit unions starting July 1.