Illinois: Prevent Credit Card Chaos
CREDIT & DEBIT CARDS MIGHT NOT WORK AT ILLINOIS BUSINESSES STARTING JULY 1, 2026
The IFPA — the Credit Card Chaos law — would create chaos for tipped workers, small businesses and local banks and credit unions. Why should they have to pay the price for Springfield’s mistake?
Why the Credit Card Chaos Law is Bad Policy
Cards May No Longer Work for Tax & Tips
Because of a law passed in the middle of the night without any public scrutiny, consumers in Illinois may have to pay sales taxes and tips in cash rather than using their credit cards for these portions of transactions as they do today.
Main Street Pays the Price
Tipped workers and small businesses will become collateral damage for a rushed political mistake.
Springfield Politicians are Ignoring the Warning Signs
Hear from experts about the impact of this law.
“Ill-conceived, highly unusual and largely unworkable state law…it is likely that fraud risk would increase significantly, consumer services would be constrained and public trust would decline.”
“Indisputably disruptive…costly… [with] business-ending consequences for local banks and credit unions”
“Springfield’s Swipe Fee Gamble Deserves a Repeal”
How Would the IFPA Hurt Illinois?
The IFPA would cause credit card chaos for consumers, small businesses and local financial institutions. Here’s why:
TIPPED WORKERS’ INCOME DIMINISHES
Servers and gig economy workers who depend on tips for their livelihoods will see their income go down when customers are limited to tipping with cash they carry.
PUTS LOCAL BANKS AND CREDIT UNIONS AT RISK
These vital financial institutions would face burdensome compliance and excessive fees that threaten their viability.
SMALL BUSINESSES ARE HARMED
They face lost sales and accounting headaches while corporate mega-stores reap all the benefits.
FORCES CONSUMERS TO USE CASH FOR SALES TAX & TIP
Because the IFPA prohibits interchange on taxes and tips, purchases made with cards will require two transactions — one for the goods or services and another for sales tax and tip, which consumers could be forced to pay in cash.
THREATENS FRAUD PROTECTIONS
Eroding interchange state by state puts businesses and consumers at risk by jeopardizing funding for fraud prevention and cybersecurity investments that keep card payments secure.
REWARDS GO AWAY
Interchange funds popular credit card rewards programs that consumers depend on — including airline, hotel, and cash-back cards — and these programs will be diminished if interchange revenue is eroded state by state.
IFPA: A Giveaway to Corporate Mega-Stores
In 2025, similar bills being pushed by corporate mega-stores who stand to gain millions were rejected in every state they were introduced. Those other state lawmakers realized the policy would hurt consumers, local economies and workers and said no to bringing Illinois’ credit card chaos to their state.
Local News
Resources
Leading Organizations in Illinois Oppose the IFPA
Tell Springfield: Stop the Credit Card Chaos Law
Contact your local elected leaders today and let them know you oppose this harmful law.
Paid for by the Electronic Payments Coalition www.electronicpaymentscoalition.org 1747 Pennsylvania Ave. Washington, DC 20006