- Illinois HB 4951 prohibits interchange fees paid by merchants
- Law goes into effect on July 1, 2025
- Card networks cannot charge fees on tax or gratuity amount in a sale
- Businesses currently pay interchange fees on total bill value, including tax and tips
- New law restricts changes in other fees by card processors
- $1,000 civil penalty per transaction plus fee refund after law goes into effect
- Illinois taxpayers should be aware of the law and look out for updates
- Merchants should ensure systems can track how fees are applied for documentation after effective date
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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