Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1798

Introduced
2/6/25  

Caption

INTERCHANGE FEE-REPEAL

Summary

SB1798 is a very short bill that repeals the Illinois Interchange Fee Prohibition Act in its entirety. The measure contains no substantive replacement language; it simply removes the existing statutory framework that restricted interchange fees, which are the fees associated with payment card transactions. The bill is effective immediately upon enactment. In practical terms, the bill would restore the prior legal landscape for payment card interchange fees in Illinois by eliminating the state-level prohibition. That would affect businesses, merchants, payment networks, card issuers, and other participants in electronic payment processing, as well as any state enforcement or compliance obligations created by the repealed act. Because the bill is a repeal rather than a new regulatory scheme, its main legal effect is to undo existing restrictions in 815 ILCS 151. The available context shows no committee transcripts and no recorded votes, so there is no documented debate or formal legislative sentiment in the materials provided. Based on the bill’s subject matter, the measure appears to be business- and finance-oriented, with likely interest from payment industry stakeholders and merchants affected by card processing costs. The main point of contention is likely whether Illinois should continue limiting interchange fees or instead defer to the existing card-payment market structure. Supporters of repeal would generally favor reducing regulatory burdens and preserving payment network pricing flexibility, while opponents would likely argue that the prohibition protects merchants from high processing costs and helps control consumer prices. No specific side is documented in the provided record.

Impact

The bill would repeal 815 ILCS 151, the Interchange Fee Prohibition Act, removing Illinois’s statutory restrictions on interchange fees tied to payment card transactions. This would directly affect merchants, card issuers, payment processors, and payment networks by eliminating the state-law prohibition and any compliance requirements or enforcement mechanisms created under that act. The repeal would take effect immediately.

Sentiment

There is no recorded committee discussion or vote history in the provided materials, so the bill’s formal sentiment cannot be measured from legislative debate. The bill’s framing as a repeal of a business regulation suggests it may appeal to payment industry and business interests, while likely drawing concern from merchant advocates or others who supported the original fee prohibition. Overall, the available record is neutral and sparse.

Contention

The likely controversy is whether repealing the Interchange Fee Prohibition Act would benefit businesses by reducing regulation and restoring flexibility in payment card pricing, or whether it would harm merchants by allowing higher interchange costs to return. Supporters of repeal would tend to include financial services and payment network interests; opponents would likely include merchant groups and consumer advocates concerned about transaction costs. No specific objections or endorsements are documented in the provided transcripts or votes.

Companion Bills

No companion bills found.

Previously Filed As

IL SB3237

INTERCHANGE FEE-REPEAL

IL HB1822

INTERCHANGE FEE-REPEAL

IL HB5743

INTERCHANGE FEE-REPEAL

IL HB1215

Regulation of interchange fees.

IL SB0412

Payment card network interchange fees.

IL H650

No Interchange Fees on Sales Tax or Tips

IL HB171

Interchange Fees: Tax & Gratuity

IL HB2768

interchange fees; payment card transactions

IL SB917

Electronic Payment Transactions - Interchange Fees - Calculation and Use of Data

IL S03485

Relates to prescription drug formulary coverage for interchangeable biologics and biosimilars.

Similar Bills

No similar bills found.