This week the Illinois House passed HB4951 and all amendments, including Senate Floor Amendment 2. This provision of the bill prohibits interchange fees to be levied upon sales tax or gratuities for electronic payment transactions.

When will this go into effect?

Amendment 2 of HB4951 is scheduled to go into effect July 1, 2025.

What does this mean for my dealership?

At this moment and for the near future, nothing changes.

Next year, depending on your current processor’s capabilities, you may need to purchase new equipment to accommodate the change in law. Compliance with this change in the law is mandatory. Penalties for non-compliance may be $1,000 per occurrence.

This is an excellent example of how important it is to select a processor that is an industry leader in technology and sufficiently resourced to address the legal requirements of each State. Cost Advisor is an exclusive agent of Fiserv, the largest processor of financial transactions in the world. Our team is already taking steps to address this change and will have compliant solutions in place for our merchants by the effective date.

After this goes into effect, what can I expect?

For more detailed information, you can refer to the full legislative text on the Illinois General Assembly website at https://www.ilga.gov. Or you can contact CATA Associate Member Bill Brudenell of Cost Advisor at 847-505-9210 for more information.