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* Tulchin is a legit pollster which does lots of work for the House Democrats. The poll, however, has some pretty leading questions. Illinois Retail Merchants Association press release…
A recent poll found more than 70% of Illinois voters support banning interchange fees or “swipe fees” on the tax and tip portion of credit card transactions. The poll of 800 Illinois voters, conducted by Tulchin Research/Impact Research, showed overwhelming public support for the new Illinois law, with respondents agreeing that swipe fees are unfair to businesses and workers and lead to higher prices for consumers.
Illinois recently passed the Interchange Fee Prohibition Act, which prohibits banks and credit card companies from charging swipe fees on the state and local sales tax and tip portion of a sales transaction when the consumer pays with a credit or debit card. Credit card companies and financial institutions currently charge the retailers and restaurants a fee when consumers use cards, based on the total transaction amount of the goods, tax and any tip. Credit card companies are still able to charge the interchange fee for the purchase price of the product. The Interchange Fee Prohibition Act will lower the amount that credit card companies can charge retailers and save businesses and consumers millions of dollars a year.
Key findings of the poll, which was taken September 6 through September 11, include:
• 86% of voters agree that it is unfair for banks and credit card companies to charge businesses swipe fees on the sales tax they collect for the state of Illinois and local government.
• 82% agree that it is unfair to workers and businesses to charge swipe fees on top of their tips.
• 84% of voters agree that excessive swipe fees charged to businesses end up being paid by consumers in higher prices.The survey found support is broad-based and strongly backed by voters across the state and political spectrum. Additionally, the majority of voters disagree with the false assertion by banks and credit card companies that the swipe fee prohibition will hurt consumers by limiting their ability to use credit cards and shortchanging them on credit card rewards points.
“The idea that banning swipe fees would harm consumers is completely false, and this poll shows that voters see through those claims. The Interchange Fee Prohibition Act will provide tangible relief to Illinois families and retailers of all sizes and types by limiting the fees financial institutions can charge on the sales and excise tax and tips portion of transactions,” said Rob Karr, president and CEO, Illinois Retail Merchants Association. “It’s no surprise that a majority of Illinois voters support this commonsense measure to keep costs low for consumers and help small businesses save money, grow, and create jobs.”
* Response…
Joint Statement from Illinois Bankers Association Ben Jackson and Illinois Credit Union League Ashley Sharp:
“Today’s poll and press conference from the retailers was nothing more than a smokescreen. The survey clearly failed to inform consumers that this law will cause chaos every time they use a credit or debit card and no amount of spin from the retailers will change that.
“Besides violating a host of federal laws as our legal complaint makes clear, this law does absolutely nothing for consumers. It doesn’t mean bigger tips for workers, or that workers get to keep more of their tips. In fact, it could incentivize people not to leave a tip at all. And the law doesn’t raise a single dollar for the state of Illinois. It simply forces banks, credit unions, small businesses and everyone at the check-out counter to navigate a needlessly complex new system that rewards the state’s largest retail stores. No one else in the world has adopted this approach, and for good reason.”
Discuss.
posted by Rich Miller
Wednesday, Sep 25, 24 @ 1:44 pm
Previous Post: Reason for new bill collapses, so all sponsors are left with is a ’stunt’
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This is what happens when major issues like this are put into an omnibus budget implementation bill at the end of session instead of having the proper vetting by a committee. This practice needs to stop.
Comment by BIMP Reform Wednesday, Sep 25, 24 @ 2:27 pm
I would be incredibly happy if banks/credit card companies either made less of a profit margin or if execs got paid less, but I think we all know it’ll be a cold day in #$*( before that happens. So they’ll get their pound of flesh one way or another, probably by upping the fee % on the part of the transaction they’re allowed to get paid for. I don’t see the endgame here.
Comment by Perrid Wednesday, Sep 25, 24 @ 2:29 pm
== probably by upping the fee % on the part of the transaction they’re allowed to get paid for.==
815 ILCS 151/150-10 (d) It shall be unlawful for an issuer, 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 transaction not attributable to taxes or other fees charged to the retailer to circumvent the effect of this Section.
Comment by 8657 Wednesday, Sep 25, 24 @ 2:33 pm
I do not know the inside and out of the existing federal law that Sharp is talking about and the legality of passing a new one.
What I do know is, I choose to pay cash with small retailers and people I do business with.
I was told by one, that if you “tap” to pay rather than “swipe”, the fees paid by the retailer are lower.
Comment by Cool Papa Bell Wednesday, Sep 25, 24 @ 2:33 pm
= incredibly happy if banks/credit card companies either made less of a profit margin=
Don’t paint with such a broad brush - my debit card/credit card are issued by a local credit union - fees are lower than big banks and very transparent - FYI the IL Credit Union lobby is against the change.
Comment by Donnie Elgin Wednesday, Sep 25, 24 @ 2:36 pm
Forgive me for not shedding a tear for the banks. The fact that they can charge a fee at all is outrageous. All bank fees need to be eliminated.
Comment by Demoralized Wednesday, Sep 25, 24 @ 2:37 pm
8657, good luck proving it. A couple years after the legal battles die down, when their profits aren’t where they want it to be, they’ll raise rates and say it’s necessary to stay competitive, or whatever and claim it has nothing to do with the restriction. Then there will be more lawsuits.
Again, I’d be happy if we could actually make their take a haircut, I just don’t think it’ll happen.
Comment by Perrid Wednesday, Sep 25, 24 @ 2:55 pm
Perrid, completely agree with your assessment on what they will attempt to do to circumvent the law. That being said, it would be an expensive gamble on their behalf:
815 ILCS 151/150-15(a) An issuer, a payment card network, an acquirer bank, a processor, or other designated entity that has received the tax or gratuity amount data and violates Section 150-10 is subject to a civil penalty of $1,000 per electronic transaction…
Comment by 8657 Wednesday, Sep 25, 24 @ 3:21 pm
If you’re explaining you’re losing. By the amount of explaining IRMA has been doing this summer it sure looks like the rank and file legislators aren’t buying their message. I suppose polls like this may give a little cover to the three tops but not much.
Comment by Wilson Wednesday, Sep 25, 24 @ 3:25 pm
== Forgive me for not shedding a tear for the banks. The fact that they can charge a fee at all is outrageous. All bank fees need to be eliminated.==
You it costs banks money to process credit cards and that they bear significant risks for losses from fraud, don’t you?
Comment by SAP Wednesday, Sep 25, 24 @ 3:26 pm
You must work for a bank. As I said. I don’t care. Bank fees should be eliminated. Period. Charging fees to swipe a credit card. Charging fees to get my own money out of an ATM. Charging fees just to have a bank account. All of it. Ban it.
Comment by Demoralized Wednesday, Sep 25, 24 @ 3:28 pm
Only a Banker could believe that consumers could be in favor of fees.
If John Fritchey and Jack Franks were dead, they’d be rolling over in their graves.
Comment by Yellow Dog Democrat Wednesday, Sep 25, 24 @ 5:09 pm