Bank, Credit Union Groups Sue Over Illinois Swipe Fee Law (1)

Banks and credit unions sued to overturn an Illinois law that would bar them from collecting swipe fees on retail tips and taxes.

The American Bankers Association, America’s Credit Unions, and two state-level banking and credit union trade groups say the Interchange Fee Prohibition Act is preempted by a host of federal banking laws, including the National Bank Act and the Federal Credit Union Act.

The Illinois law, slated to take effect in July 2025, can’t be applied to state-chartered banks and credit unions or institutions with national charters, the lawsuit, filed Thursday in the US District Court for ...