Illinois Delays Controversial Interchange Law – DCUC Calls for Full Repeal

Anthony Hernandez

​The Defense Credit Union Council (DCUC) issues the following statement following the Illinois General Assembly’s recent vote to delay implementation of the Interchange Fee Prohibition Act (IFPA). While this vote provides temporary relief to every state-chartered bank, credit union, small business, and cardholder in Illinois, the bill now awaits Governor Pritzker’s signature:

“For credit unions, interchange fees are not a profit center — they help fund the essential infrastructure that keeps the payments system secure and functional. These fees support fraud detection, cybersecurity, transaction processing, and the convenience that consumers expect when they use a credit or debit card. When lawmakers interfere with this system, it’s not the big banks or mega-retailers who pay the price — it’s the credit unions and the members they serve.

Credit unions serve millions of everyday Americans, including military families, veterans and retirees, young students and service members, and small business owners. Many of these communities rely on low- or no-fee checking accounts, affordable credit options, and financial education — all of which would be greatly reduced with interchange legislation such as the IFPA.

‘Lawmakers should be very clear-eyed about who this law benefits — and who it harms,’ says Jason Stverak, DCUC Chief Advocacy Officer. ‘This is not about consumer protection; it’s about increasing the profit margins of the largest retailers at the expense of community-based financial institutions.’

Anthony Hernandez, DCUC President/CEO states, ‘The IFPA disrupts a secure, reliable payment system and threatens to pass the burden onto consumers through reduced services, fewer protections, and higher costs. We urge the General Assembly to do what’s right and repeal the IFPA in full. And we call on lawmakers nationwide — including all of Congress — to reject harmful interchange mandates that put financial access and security at risk for millions of credit union members across the country.’

DCUC will continue to oppose harmful mandates that threaten financial stability and credit unions’ ability to serve their members.”

---