{"id":953,"date":"2026-06-01T11:36:51","date_gmt":"2026-06-01T16:36:51","guid":{"rendered":"https:\/\/www.paymentconsulting.net\/Blog\/wordpress\/?p=953"},"modified":"2026-06-01T11:36:51","modified_gmt":"2026-06-01T16:36:51","slug":"the-illinois-ifpa-implementation-date-is-extended-again","status":"publish","type":"post","link":"https:\/\/www.paymentconsulting.net\/Blog\/wordpress\/?p=953","title":{"rendered":"The Illinois IFPA Implementation Date Is Extended Again"},"content":{"rendered":"
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The Illinois IFPA Implementation Date Is Extended Again<\/h1>\n

<\/i>Kevin Woodward<\/a><\/span>\u00a0<\/i>June 1, 2026<\/span>\u00a0<\/i>Acquiring<\/a>,\u00a0Law and Regulation<\/a>,\u00a0Point-of-sale<\/a>,\u00a0Pricing<\/a>,\u00a0Transaction Processing<\/a><\/span><\/p>\n

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A last-minute budget move will see the implementation date for the Illinois Interchange Fee Prohibition Act pushed back a year, to July 1, 2027.<\/p>\n

Originally scheduled to become law Monday, the\u00a0IFPA<\/a><\/strong>\u00a0would have seen interchange on sales tax and tips prohibited. How it would have been implemented has been a sticking point for both advocates and detractors.<\/p>\n

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The delay is expected to be signed by Governor JB Pritzker as part of the state\u2019s 2027 budget. The IFPA was originally scheduled for\u00a0implementation<\/a>\u00a0<\/strong>July 1, 2025, but was delayed for a year.<\/p>\n

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On the payments side, the delay is a sign the act is flawed. \u201cThis second delay reflects the reality that the law was flawed from the beginning,\u201d Scott Talbott, executive vice president of the Electronic Transactions Association, tells\u00a0Digital Transactions News<\/em>\u00a0via email. \u201cWith the OCC ruling that the IFPA is preempted for national banks, it should be repealed.\u201d In April the\u00a0Office of the Comptroller of the Currency<\/a>\u00a0<\/strong>filed a notice about a rule to preempt the IFPA,\u00a0Digital Transactions News<\/em>\u00a0reported.<\/p>\n

Other payments advocates also supported the extension.<\/p>\n

\u201cThe Illinois General Assembly\u2019s extension of the Interchange Fee Prohibition Act\u2019s effective date is a win for consumers and credit unions,\u201d says Scott Simpson, president and chief executive of trade association America\u2019s Credit Unions. \u201cHowever, ongoing litigation and the recent rules from the OCC and NCUA reinforce that more action is needed. Even with an extension, if the law takes effect, Illinois\u2019s state-chartered credit unions and community banks will be at a disadvantage as federal institutions are preempted.\u201d<\/p>\n

The Electronic Payments Coalition also says it appreciated the delay. \u201cAt the same time, this latest delay is yet another acknowledgment that lawmakers rushed through a deeply flawed law without fully understanding the consequences. Unfortunately for Illinois consumers, small businesses, community banks, and credit unions, delaying the chaos is not the same as fixing it. The only real solution is full repeal,\u201d Richard Hunt, EPC executive chairman, says in a statement.<\/p>\n

Meanwhile, the\u00a0Merchant Payments Coalition<\/a><\/strong>, which has advocated for the measure, says the delay was unfortunate. \u201cThe law ought to go into effect at this point,\u201d Doug Kantor, an executive committee member of the MPC, tells\u00a0Digital Transactions News<\/em>.<\/p>\n

\u201cUnderstand that the banks are throwing around misinformation that people get nervous about,\u201d Kantor says. \u201cThe only issue in Illinois is the credit card industry is dragging its feet and tried to throw obstacles at it. We look forward to the law eventually going into effect.\u201d<\/p>\n

The National Retail Federation also is disappointed with the delay. \u201cWe share in the disappointment,\u201d says Dylan Jeon, vice president of NRF government relations. \u201cWe look forward to picking this back up next year.\u201d In the meantime, the NRF\u2019s focus will be on ongoing litigation, he says.<\/p>\n

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