SPRINGFIELD, IL. — The Illinois Credit Union League (ICUL) applauds the Illinois General Assembly for approving legislation that extends implementation of the Interchange Fee Prohibition Act (IFPA) for an additional year, moving the effective date from July 1, 2026, to July 1, 2027.
The extension, contained in SB 3645, marks the second consecutive year lawmakers have recognized the significant operational, legal, and consumer concerns surrounding the law and the need for additional time to address its far-reaching impacts on Illinois’ electronic payments ecosystem.
Since its enactment, financial institutions, payment networks, processors, retailers, and policymakers have continued to grapple with the unprecedented challenges posed by the Illinois law. The concerns that prompted lawmakers to delay implementation in 2025 remain unresolved, including questions regarding compliance, consumer protections, network operations, and the potential disruption of secure electronic payment systems relied upon by millions of Illinois consumers and businesses every day.
“Credit unions strongly support efforts to protect consumers and maintain a safe, reliable, and efficient payments system,” said Libby Calderone, President and CEO of the Illinois Credit Union League. “This extension provides much-needed certainty to preserve the strength and integrity of the electronic payments infrastructure that Illinois families depend on every day. A fragmented payment system would create unnecessary costs, confusion, and risk for consumers, businesses, and financial institutions alike.”
The Illinois Credit Union League expressed appreciation to legislative leaders who worked to secure passage of the extension and prevent unnecessary disruption to consumers and financial institutions across the state.
“We are grateful to House Speaker Welch and Senate President Harmon for their leadership and support in advancing this important extension,” said Ashley Sharp, Chief Legal Officer and Senior Vice President of State Advocacy for the Illinois Credit Union League. “Their commitment to ensuring Illinois consumers continue to benefit from a secure and dependable payment system has been instrumental. This extension provides policymakers and stakeholders the opportunity to continue evaluating the significant legal, operational, and consumer implications associated with the law.”
Credit unions have consistently maintained that the Interchange Fee Prohibition Act presents substantial implementation challenges that could negatively impact consumers, particularly through increased costs, operational complexity, reduced access to payment services, and threats to fraud prevention. The extension will allow for continued dialogue among lawmakers, regulators, financial institutions, payment networks, small businesses, and consumer advocates regarding the law’s future and its potential effects on Illinois consumers and businesses, particularly in light of ongoing litigation challenging the law’s constitutionality.
The Illinois Credit Union League remains committed to working with lawmakers to support policies that protect consumers, preserve financial choice, and maintain the security and reliability of the nation’s electronic payments system.
The legislation extending implementation of the IFPA will now go to Governor J.B. Pritzker for approval.
