[The following is a paid advertisement.]

Illinois’ proposed swipe-fee law promises relief at the register - but delivers something else entirely. By cutting interchange fees, it redirects billions from consumers to large retailers, without any requirement that savings be passed on as lower prices.

Interchange fees fund essential parts of today’s payments system, including fraud protection, rewards programs, and access to low-cost banking. Eliminating those resources doesn’t remove costs, it shifts them. Consumers are likely to see fewer benefits, weaker safeguards, and higher fees in other areas, while major retailers pocket the difference.

Evidence from similar policies shows that price reductions rarely materialize. Instead, the biggest financial gains accrue to large national chains, not Illinois families.

The law also risks creating a fragmented, state-by-state payments landscape that increases complexity, undermines security, and adds friction at checkout. Those challenges ultimately fall on consumers through higher costs, reduced choice, and a less reliable system.

This proposal isn’t about lowering prices - it’s about redistributing value. And if enacted, consumers will bear the cost in lost protection and diminished benefits, while large retailers come out ahead.

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

Paid for by Illinois Credit Union League.