On May 29, 2024, Illinois lawmakers passed an omnibus budget bill (HB4951) that includes the Interchange Fee Prohibition Act (the “Act”). The Act prohibits the collection of debit and credit card interchange fees for sales taxes, excise taxes and gratuities if the merchant informs the acquiring bank of the amount of these taxes and gratuities.… Continue Reading
interchange fees
SCOTUS to Determine When Clock Starts under APA’s Statute of Limitations
Last Friday, the U.S. Supreme Court agreed to decide when a right of action first accrues for an Administrative Procedure Act (APA) challenge to a final rule issued by a federal agency—when the final rule is issued or when the rule first causes injury.
In April 2021, the North Dakota Retail Association, North Dakota Petroleum Marketers Association and Corner Post, Inc.… Continue Reading
North Dakota legislation seeks to ban interchange on sales tax
By Kristen E. Larson on
North Dakota SB 2217, which passed the Republican-controlled state Senate and is currently pending in the House, seeks to prohibit the collection of interchange on the sales tax portion of electronic transactions. The bill would require payment card networks to: “Deduct the amount of any tax or fee imposed from the calculation of interchange fees specific to each form or type of electronic payment transaction at the time of settlement;” or “Rebate an amount of interchange fee proportionate to the amount attributable to the tax or fee.” … Continue Reading
What was the President thinking?
By Alan S. Kaplinsky on
It has been reported in the popular press that President Obama sharply criticized a major bank for imposing a $5 per month charge to make up for the loss of interchange fees resulting from the Durbin Amendment to Dodd-Frank. He said that this is why we need the CFPB, implying that the CFPB could prohibit or limit such fees if it wanted to do so.… Continue Reading