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The Illinois swipe-fee law shifts billions from consumers to large retailers, without any guarantee of lower prices at the register. By cutting interchange fees, the policy takes resources away from the services consumers rely on and boosts mega retailers’ profits.

Interchange fees help fund fraud protection, rewards programs, and affordable banking options. Reducing them doesn’t eliminate costs; it simply moves them. Consumers are likely to see fewer benefits, weaker protections, and higher fees elsewhere, while retailers keep the savings to line their pockets.

There’s little evidence that merchants pass these savings on to shoppers. Effects from similar laws prove price reductions do not materialize. Instead, the biggest gains have flowed to large national chains, not everyday consumers.

The law also risks creating a costly patchwork of state rules that complicate payments, reduce security, and increase friction at checkout. That added complexity ultimately lands on consumers through higher costs, fewer choices, and a less reliable payments system.

This isn’t about lowering prices. It’s about redistributing value. If enacted, consumers will pay more in lost benefits and reduced safeguards, while major retailers come out ahead.

For more information, visit https://www.icul.com/advocacy/ifpa/.

Paid for by Illinois Credit Union League.