‘Credit card chaos'? Financial institutions bet big on repeal of first-of-its-kind Illinois law [Yahoo! Finance Canada]
Mastercard Incorporated (MA)
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Source: Yahoo! Finance Canada
The ads — funded by the Electronic Payments Coalition of banks, credit unions and card companies — argue that Illinois lawmakers must repeal the state's first-in-the-nation Interchange Fee Prohibition Act, slated to take effect July 1. That law prohibits financial institutions from charging “swipe,” or interchange, fees on the tax and tip portions of consumer bills and bans them from making up the fees elsewhere. If it's not repealed? “Credit card chaos” may ensue, the ads warn. While the financial institutions are quick to cite a list of things that could hypothetically happen if the law isn't repealed, it's harder to pin down what's being done and by who to comply with the law two years after it was signed. “The global payment system is not set up to where any one party to a transaction can make this happen on their own,” Ashley Sharp, of the Illinois Credit Union Association said at a Capitol news conference Wednesday. “There are multiple parties to every electronic transact
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