Latest Post | Last 10 Posts | Archives
Previous Post: SUBSCRIBERS ONLY - Update to today’s edition
Next Post: Isabel’s afternoon roundup (Updated)
Posted in:
Retailers can’t join in the defense of an Illinois law banning bank “swipe fees” on sales taxes and tips, a federal judge ruled.
The National Association of Convenience Stores, the National Retail Federation, Food Marketplace Inc., and two Illinois merchant trade groups had sought to become intervenor defendants in litigation over the Illinois Interchange Fee Prohibition Act.
But Illinois Attorney General Kwame Raoul (D) is providing an adequate defense of the law, so there’s no need for additional defendants, Judge Virginia M. Kendall of the US District Court for the Northern District of Illinois ruled Friday.
* From Judge Virginia Kendall’s ruling…
What’s more, because the state adequately represents Illinois merchants’ interest in the IFPA, permitting Proposed Intervenor Defendants to join the lawsuit would needlessly “use up the [C]ourt’s time and resources.” Even though the State does not oppose the proposed defendants from joining the suit, it does not mean that Proposed Intervenor Defendants could not delay the litigation down the line. When a new defendant joins, he acquires “control of the suit” and a “right to conduct the case in a way that may undermine the interests of the original plaintiff.” Depending on how the litigation proceeds, allowing Proposed Interveor Defendants to join the suit could unduly delay the suit.
* Crain’s…
In December, Kendall granted a preliminary injunction sought by the banking industry preventing implementation of the law, but it applied only to federally chartered banks and credit unions.
A status hearing on the case is scheduled for Feb. 4.
The retailers can still participate in the case in an amicus curiae, or friends of the court, basis.
“We think we would have added quite a bit to the case in terms of demonstrating the false claims that banks were making,” said Doug Kantor, general counsel for the National Association of Convenience Stores. “That said, we have a lot of confidence in the Illinois attorney general.”
* Ben Jackson/EVP, Illinois Bankers Association and Ashley Sharp/SVP, Illinois Credit Union League…
We welcome today’s court order denying the merchant groups’ request to join the litigation over the IFPA. These groups have already done enough damage to consumers and small businesses in the state by advancing this misguided law in the first place. This is a win for the Illinois economy and another step forward for our case against a very bad law.
* Rob Karr, president and CEO of the Illinois Retail Merchants Association…
While we certainly believe retailers who are paying these fees should have been granted status, the legal process is ongoing and we look forward to a full examination of the opaque swipe fee payment structure banks, processors, and credit card companies have for too long enjoyed.
* More…
* NBC | The fight over credit card swipe fees enters a new year with no end in sight: And as many shoppers ditched cash for plastic cards or mobile payment apps, businesses have seen credit card transactions swell. They made up 32% of all U.S. consumer payments in 2023, up from 24% in 2019, according to a Federal Reserve study. Cash shrunk its share to 16% over the same period, down from 26%.
* NYT | As Cash Fades, Small Retailers Embrace Efforts to Rein In Swipe Fees: As a pandemic precaution, droves of customers gave up cash in favor of contactless payment methods like tap to pay, and the percentage of Ms. Riordan’s sales processed through a card network rose to 75 percent, up from 65 percent in 2020. Now, so-called swipe fees are her third biggest expense, behind payroll and rent, amounting to roughly $18,000 a year. “There is no room to pay more — we’re just operating so thin,” Ms. Riordan said.
posted by Isabel Miller
Monday, Feb 3, 25 @ 1:11 pm
Previous Post: SUBSCRIBERS ONLY - Update to today’s edition
Next Post: Isabel’s afternoon roundup (Updated)
WordPress Mobile Edition available at alexking.org.
powered by WordPress.
==for our case against a very bad law==
For your case to continue your greed you mean.
Comment by Demoralized Monday, Feb 3, 25 @ 1:16 pm
Looks like IRMA is taking the money they saved on the lawsuit and investing it in CapFax adds. Never mind a dozen eggs costing $8, pay attention to the fraction of a penny in payment process cost.
Comment by Wilson Monday, Feb 3, 25 @ 1:33 pm
===investing it===
lol
The Credit Union League also invests in ads here.
Comment by Rich Miller Monday, Feb 3, 25 @ 1:34 pm
===When confronted by policymakers about some of its swipe fees, the company has said that it “has no incentive to set [them] at levels that are too high or too low.”===
If you believe that, I’d like to sell you a bridge in Brooklyn. At best, these are oligopolists, and, in some cases, monopolists. Both use their size & lack of competition to set prices at a level higher than would be seen in a competitive market.
Comment by Anyone Remember Monday, Feb 3, 25 @ 2:03 pm
I’d like to see a State law banning charges to consumers, on vehicle registration payments.
Comment by George Monday, Feb 3, 25 @ 2:30 pm
“That said, we have a lot of confidence in the Illinois attorney general.” Doug Kantor doesn’t know much about AG Kwame Raoul’s administration: weak on FOIA oversight, weak on public corruption, but strong on high profile interstate lawsuits that puff up his rep.
Comment by Payback Monday, Feb 3, 25 @ 2:37 pm
And thanks to the Credit Union ad on the site, Rich, I joined one. Thanks.
Comment by Jerry Monday, Feb 3, 25 @ 2:52 pm
Wilson where are you getting “…to the fraction of a penny in payment process cost.” - most retailers are paying a per transaction swipe fee of at least a dime + 2.5% of the total.
Yeah, I guess if you buy $8 of eggs the transaction fee on that specifically becomes a fraction of a penny once you charge several dozen bucks on the grocery cart but that cart overall is probably costing the small biz at least $3 in credit card processing fees.
Comment by ChicagoBars Monday, Feb 3, 25 @ 3:51 pm
=== Thanks===
You’re welcome.
===Never mind a dozen eggs costing $8===
And that is IRMA’s fault… how?
Comment by Rich Miller Tuesday, Feb 4, 25 @ 1:51 am