The Green Sheet Online Edition
March 9, 2026 • 26:03:01
News Briefs
Court upholds Illinois interchange prohibition <- click to read full story
A federal judge in Chicago upheld an Illinois law that would prohibit interchange fees from being assessed on the sales tax and tip portions of card transactions, rejecting a key argument from banks and credit unions that the law conflicts with federal banking regulations.
The Interchange Fee Prohibition Act, signed into law in 2024, was originally scheduled to take effect in July 2025. However, the state delayed implementation for a year while a legal challenge from the banking industry moved through federal district court. Banking groups including the Illinois Bankers Association, the Illinois Credit Union League and America’s Credit Unions argued that federal banking law preempted the state measure.
U.S. District Court Judge Virginia Kendall rejected the argument, concluding that interchange fees are set by the card networks, not by banks or credit unions. In her ruling, Kendall wrote that the payment card networks “built this ecosystem” and are responsible for setting the fees, undermining claims that federal banking law shields those charges from state regulation.
Merchant groups welcomed the decision. Doug Kantor, general counsel for the National Association of Convenience Stores, said the ruling recognized that Visa and Mastercard control swipe fees and that states should have authority to regulate them. Merchants, he argued, are unfairly charged interchange fees when they collect sales taxes and tips that are ultimately passed on to governments and employees.
Banking and credit union groups said they intend to appeal the ruling. At least 13 states, including New York, Arizona and Georgia, are examining measures to restrict interchange fees on certain portions of card transactions.
Europe moves to loosen Visa, Mastercard grip on payments <- click to read full story
European policymakers and banking leaders are stepping up efforts to reduce the region’s reliance on foreign payment networks, particularly Visa and Mastercard. Thirteen countries joined an alliance known as EuroPA to help build a Europe-based payment infrastructure centered on Wero, a digital wallet operated by the European Payments Initiative (EPI). EPI is a consortium of 16 major European banks and payment processors.
In the United Kingdom, senior banking executives met to discuss creating a domestic alternative to Visa and Mastercard. The push reflects concerns about dependence on the two U.S.-based networks, which handle about 95 percent of card transactions in the UK, according to a 2025 report from the country’s Payment Systems Regulator.
European officials said reducing reliance on foreign payment providers has become increasingly urgent. Martina Weimert, CEO of EPI, told Yahoo Finance that Europe remains “highly dependent on international solutions.” European Central Bank President Christine Lagarde echoed that concern, noting that nearly two-thirds of eurozone card transactions, worth roughly $24 trillion, were routed through Visa or Mastercard in 2022.
The effort is part of a broader push for what some leaders call “payments sovereignty," believing that Visa and Mastercard wield outsized influence over global payments and have raised fees significantly in recent years. Some policymakers also point to geopolitical risks, noting that sanctions against Russia after its invasion of Ukraine effectively cut that country off from the networks, raising questions about Europe’s vulnerability to similar disruptions.
The centerpiece of Europe’s alternative strategy is Wero. Built on the SEPA instant payment system, Wero allows users to send money using only a phone number. The platform already has more than 47 million users across Belgium, France and Germany and has processed over 7.5 billion euros in transfers.
10% rate cap would hit card issuers hardest, analysis finds <- click to read full story
A proposed federal cap limiting credit card APRs to 10 percent would concentrate the impact on a small set of card-centric issuers rather than destabilizing U.S. banking, according to a Feb. 13, 2026, analysis by Amberoon under its Statum analytics brand. Using fourth quarter 2025 FFIEC Call Report data, Amberoon reviewed 4,284 banks and an estimated $620 billion in credit card loans, with roughly $68 billion of net interest income at risk.
Amberoon’s key finding: only 13 institutions fall into its “critical” tier, where modeled yield compression would push profitability into negative territory because their business models rely heavily on high-yield revolving credit. The report describes these as specialist issuers and names Synchrony, Comenity, Capital One, Barclays Delaware and American Express Centurion among the most exposed. By contrast, Amberoon said 85.3 percent of banks in the dataset have zero credit card exposure, leaving most community and regional banks largely insulated from direct earnings pressure.
Amberoon compared an observed average APR of 20.97% with the proposed 10 percent ceiling, converted the yield reduction into a projected return-on-assets impact, and sorted banks into four tiers. Beyond the critical group, it identifies a “stressed” tier of 223 banks that would remain profitable but could face earnings pressure, potentially tightening underwriting or reducing appetite for revolving credit. Some institutions, the report noted, were already unprofitable before applying the cap.
Amberoon warned that ripple effects could be materially significant if specialist issuers responded by shrinking lines, closing accounts or moving upmarket—affecting consumers and small businesses that use cards as backup liquidity. It also anticipated demand shifting to BNPL or other alternatives. Conversely, the report argues retrenchment by large issuers could open opportunities for community banks to expand installment lending.
Jackpotting siphons millions of dollars off ATMs <- click to read full story
ATM jackpotting attacks are increasing sharply across the United States, costing financial institutions millions of dollars and prompting new warnings from federal authorities. According to a recently released FBI bulletin, more than 1,900 jackpotting incidents have been reported since 2020. Over 700 of those occurred in 2025 alone, resulting in losses exceeding $20 million.
Jackpotting refers to a form of ATM fraud in which criminals manipulate machines to dispense their stored cash, much like a slot machine paying out a jackpot. Attackers often combine physical tampering with malware designed to seize control of the ATM’s operating system.
One common tool used in these attacks is malware known as Ploutus, which targets the Windows operating systems that power many ATMs. Criminals typically gain access to a machine using generic keys that can open an ATM’s front panel. Once inside, they may remove the hard drive and install malware before reinstalling it or replace the drive entirely with one already loaded with malicious software.
Once compromised, the ATM can be forced to dispense its cash reserves without requiring legitimate transactions or PIN verification. The FBI noted that because the malware attacks the ATM itself rather than individual accounts, the cash-out process can occur in minutes and often goes undetected until after the money is gone.
Recent law enforcement actions highlighted the scope of the problem. For example, in February 2026, a federal grand jury in Nebraska indicted six individuals in connection with jackpotting attacks. The charges followed a December 2025 indictment alleging that the foreign criminal group Tren de Aragua orchestrated similar attacks nationwide, involving 22 defendants.
The FBI recommends several defensive measures for financial institutions, including replacing standard ATM locks, installing alarm-triggering keypads on maintenance panels, encrypting hard drives, expanding camera coverage and regularly auditing machines.
New York sets BNPL regs into motion <- click to read full story
New York is moving to establish one of the nation’s most comprehensive regulatory frameworks for buy now, pay later (BNPL) financing, with rules proposed Feb. 24, 2026, to implement legislation signed by Governor Kathy Hochul in January.
The proposed regulations would apply to both interest-free BNPL products and installment loans that carry interest or finance charges. If adopted, the rules would require BNPL providers operating in New York to obtain licenses and submit to state supervision. They would also prohibit excessive or “junk” fees, limit late and penalty charges, and require companies to clearly disclose whether loans will be reported to credit bureaus. Additional provisions would set standards for resolving consumer disputes and establish protections against misuse of consumer data.
State officials said the rules aim to ensure that innovation in financial products is paired with strong consumer safeguards. Hochul said many BNPL products have been structured in ways that expose consumers to hidden fees and complex terms that can lead to debt problems. Acting New York State Department of Financial Services Superintendent Kaitlin Asrow said the regulations will provide oversight while ensuring transparent loan terms and fair dispute processes.
Consumer advocates believe the New York framework could become a model for lawmakers nationwide seeking to address growing risks associated with BNPL use. Lauren Saunders of the National Consumer Law Center said many BNPL borrowers have subprime credit profiles and already carry significant debt, making stronger oversight essential. The Federal Reserve Bank of Richmond, noted that BNPL loans have grown about 20 percent annually since 2021, reaching roughly $70 billion in 2025, or about 1.1 percent of credit card spending. 
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