District Court Issues Split Decision On Illinois Interchange Act; Plaintiffs Appeal

On Feb. 10, U.S. District Judge Virginia Kendall issued a split decision regarding the Illinois Interchange Fee Prohibition Act (IFPA). Illinois Bankers Association v. Raoul, __ F.Supp.3d __, 2026 WL 371196 (N.D. Ill., Feb. 10, 2026). The IFPA is scheduled to become effective July 1, 2026, and would ban financial institutions, including payment networks and other entities, from (i) charging or receiving interchange fees in Illinois on the portion of a debit or credit card transaction attributable to tax or gratuity (Interchange Fee Provision) and (ii) using data generated in connection with credit card transactions for anything more than completion of the transaction (Data Use Provision). See our ALERTS of June 5, 2025 and June 17, 2025. The district court earlier granted injunctive relief from the law to banks, savings associations, and out-of-state statechartered banks on both points, but in reviewing requests for permanent injunctive relief, denied relief on the Interchange Fee Provision while granting relief on the Data Use Provision.
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