Mastercard and Visa face increased U.S. legal pressure regarding credit card interchange fees. A federal judge ruled on February 10 to advance Illinois' Interchange Fee Prohibition Act. This law prohibits swipe fees on sales tax and tips.
The proposed federal Credit Card Competition Act seeks to increase market competition. This legislation aims to lower interchange fees for merchants.
Merchant groups support the court's decision. Banking and payments coalitions warn the law could disrupt the payments system. Banking associations plan to appeal the ruling. The Illinois law takes effect on July 1, 2026.