The “Swipe Fee ripoff,” as President Donald Trump succinctly described, is a scourge on American small businesses and consumers. Charging vendors roughly 2.5% of every credit card transaction, these swipe fees accumulate at such a rapid pace that they’ve become one of the largest expenses for businesses, compelling many store owners to pass the costs down to their customers via increased prices. That is a real part of the affordability problem for the public right now.

Illinois took the lead at the state level to address this dilemma by passing the Interchange Fee Prohibition Act in 2024. This law is the first of its kind in the nation to ban financial institutions from charging swipe fees on the tax and tip portion of card transactions – money that Main Street stores don’t even get to keep. Scheduled to take effect on July 1, the IFPA could pave the way for other states adopting legislation that will save local businesses thousands of dollars in swipe fees.