Banks and credit card companies promise to appeal a federal judge’s decision Tuesday to allow Illinois’ ban on credit card fees on taxes and tips to go forward.
Judge Virginia Kendall acknowledged the law will require extra costs to set up a new process to parse out components of credit card purchases, but she said laws always require some kind of compliance cost.
She did side with the banks in striking down part of the law that limited their ability to share data.
The Illinois Retail Merchants Association called the ruling a “historic win for Main Street over Wall Street” that will save businesses and consumers millions of dollars a year.
Meanwhile, Illinois Bankers Association and other financial institutions that sued over the 2024 law claim the decision will unleash chaos and confusion.
They’re deeply disappointed by the ruling and continue to call on state legislators to repeal the law that they say will impose a major burden on them.
Illinois is the first state in the US to enact such a ban.
Legal battles prompted lawmakers to push back the start date to July 1.