Illinois set to bar credit card fees on tax, tip portion of bills in July

DECATUR, Ill. (WAND) – Starting July 1, credit card companies may no longer be able to charge a swipe fee on the sales tax or tip portion of your bill.

If you eat at your favorite restaurant, the swipe fee would apply to your total bill: food, drinks, tax and tip.

Under legislation passed by the general assembly in 2024, the tax and tip portion will be exempt.

Banks and credit unions have been in court trying to stop the first-in-the-nation legislation. Last week, a federal Judge in Northern Illinois ruled the law can be implemented.

Small businesses, especially restaurants and retailers, are applauding the court ruling. Banks and credit unions will be appealing in an attempt to block it.

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