Swipe Fees Do Not Apply To Taxes And Tips In Illinois

By Rachel Gignac

Swipe fees will be prohibited on sales tax, state excise taxes and gratuities in Illinois, according to the Interchange Fee Prohibition Act. The act was included in the state's budget, which the Illinois House passed Wednesday. Illinois Gov. J.B. Pritzker has indicated he will sign it, the National Association of Convenience Stores said.

As part of Pritzker’s budget proposal, he included a provision to cap the tax discount claimed by retailers at $1,000 a month, which would generate more revenue for the state but at the expense of Illinois retailers.While other states have con...