The Illinois Retail Merchants Association (IRMA) is speaking out against a federal plan to overrule a new Illinois law designed to offer relief to businesses and consumers from swipe fees charged on credit and debit card transactions.
On Monday, the Office of the Comptroller of the Currency (OCC), part of the U.S. Department of the Treasury, announced its intention to preempt Illinois’ Interchange Fee Prohibition Act. The state law, which was recently upheld by a judge, prohibits banks and credit card companies from charging swipe fees on the tax and tip portion of transactions when consumers pay by card.
IRMA President and CEO Rob Karr called the federal action “unprecedented” and accused the OCC of “prioritizing the bottom line of banks and credit card companies over meaningful relief for businesses and consumers.” Karr also criticized the OCC for failing to explain its reasoning or allow for public input, calling the move an “end-run around the legal process.”
“Banks, credit card companies, and credit card processors are doing all they can to preserve an uncompetitive and unfair system, including spending millions of dollars on ads spreading falsehoods and threatening to cause chaos for consumers,” Karr said in a statement. “It’s time to end their reign over our pocketbooks.”
The announcement comes as the retail industry in Illinois has been pushing to end what they see as excessive and unfair swipe fees, which add to the cost of doing business and ultimately impact consumers. IRMA, representing over 23,000 stores statewide, argues that the new Illinois law would have provided significant and much-needed relief.
Founded in 1957, IRMA is one of the largest state retail organizations in the country, advocating for retailers from national chains to local independent shops. The association says it will continue to fight for fair business practices and consumer protections in Illinois, despite the latest challenge from federal regulators.