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HB 1822

INTERCHANGE FEE-REPEAL

104th Regular Session Introduced by Murri Briel and 2 co-sponsors

Illinois bill to eliminate state interchange fee caps on credit/debit card processing, allowing unrestricted rate increases that could raise consumer prices and burden small merchants.

Added Co-Sponsor Rep. Amy Briel
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WeVote Research Nonpartisan
Bill Summary · HB 1822

Legislative bill overview

HB 1822 proposes to repeal Illinois's interchange fee regulations, which currently cap or control the fees that payment card processors can charge merchants for processing credit and debit card transactions. The bill would eliminate state-level restrictions on these fees, allowing card networks and processors to set interchange rates without state limitations.

Why is this important

Interchange fees are passed through to consumers via higher retail prices and reduced merchant profit margins. This bill would affect pricing across Illinois's entire retail economy, potentially increasing costs for consumers while benefiting financial institutions and payment processors. The outcome depends on whether merchants pass savings or increases along to shoppers.

Potential points of contention

  • Consumer pricing impact: Repealing caps could allow unrestricted fee increases, potentially raising prices on everyday purchases if merchants pass costs to consumers
  • Small business burden: Independent retailers and small merchants often operate on thin margins and would face higher processing costs without state protections
  • Bank vs. merchant interests: Financial institutions favor deregulation while retail and business groups typically oppose removing fee limitations that protect their competitiveness
  • Preemption concerns: Federal Dodd-Frank Act already regulates debit card interchange; state-level deregulation creates a patchwork that may disadvantage Illinois merchants nationally

Compiled from official sources — confirm details with the bill’s official record.

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