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and the Electronic Fund Transfer Act (EFTA). These grant the financial well-being of the over 4 million Illinois resi-
national banks, savings associations and credit unions dents who rely on credit unions.
the authority to process credit and debit card transactions
without interference from state laws. The plaintiffs argue Tom Kane, president and CEO of the Illinois Credit Union
that the IFPA would significantly interfere with these fed- League, highlighted the global implications of the IFPA,
erally granted powers, making it unconstitutional and un- noting that it could disrupt a payment system that is re-
enforceable. garded globally as efficient and effective. He expressed
concern that the law could set a dangerous precedent,
Economic impact and consumer confusion leading to similar legislation in other states and causing

Another concern raised by the plaintiffs is the IFPA's po- further disruptions to the U.S. financial system.
tential economic impact. Randy Hultgren, president and
CEO of the Illinois Bankers Association, warned that the The lawsuit filed by the ABA and its co-plaintiffs repre-
law could "wreak havoc at the register" by creating con- sents a significant legal battle over state versus federal
fusion for consumers and increasing costs for small busi- authority in regulating the financial industry, industry
nesses and banks across Illinois. The IFPA would require analysts noted. As the case progresses, it will likely attract
complex adjustments to the payment processing systems attention from both the financial sector and policymak-
currently used by millions of consumers and businesses, ers. The outcome could have far-reaching implications for
leading to delays and higher transaction costs, he said. how interchange fees are regulated in the United States
and may set a precedent for future state-level legislation.
Jim Nussle, president and CEO of America’s Credit Unions, GS Advisory Board perspectives
echoed these concerns, emphasizing that the IFPA's dis-
ruption to the electronic payment system could harm local Before the IFPA was challenged, we asked members of The
economies. He also criticized Illinois lawmakers for pass- Green Sheet Advisory Board the following questions:
ing a law that, in his view, benefits large retailers at the
expense of small businesses and consumers. Nussle stated 1. What are the immediate and long-term effects of
that America’s Credit Unions joined the lawsuit to protect scattered state laws likely to be on stakeholders such as

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