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Merchant services · Illinois

Merchant Services in Illinois

Illinois merchants range from Chicago taquerias, salons, and neighborhood bars to Springfield law offices, Peoria machine shops, college-town pizza places in Champaign and Carbondale, and grain-country co-ops downstate. Card fees come up in every one of those conversations. Illinois has no statute written specifically about card surcharges, but it does have two rules most states don't: a law about interchange on sales tax and tips that keeps getting delayed, and a specific fee-notice rule for ATMs. Here's what we verified, and the processing and ATM options we offer Illinois businesses.

General information, not legal advice. Check with an Illinois attorney before you change how you price or add any fee.

Illinois card-fee rules

No surcharge-specific statute

We didn't find an Illinois statute that bans, caps, or sets disclosure rules for merchant credit card surcharges, and the National Conference of State Legislatures' state table lists Illinois as having none. The general rule that applies is the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/2). It makes unlawful any deception, misrepresentation, or the concealment, suppression, or omission of any material fact that a business intends customers to rely on. A card fee that customers can't see until the receipt is the kind of thing that law is aimed at, so disclose any fee before the customer pays.

The Interchange Fee Prohibition Act isn't in effect

Illinois passed the Interchange Fee Prohibition Act (815 ILCS 151/150) in 2024. If it takes effect, card issuers, networks, acquirers, and processors couldn't charge interchange on the sales tax or gratuity portion of a transaction, as long as the merchant sends the tax or tip amount with the authorization or settlement data. Merchants that don't send it could submit tax documentation within 180 days for a credit.

As of the Illinois General Assembly's statute site on October 31, 2026, that article's effective date is July 1, 2027. It was pushed back again in 2026. The law has also been challenged in federal court, and published reports say enforcement of the fee limit has been blocked for many card issuers and the card networks while appeals continue. Nothing about it changes your rates today. If it does take effect, it would matter most to restaurants, bars, and salons with large tips and to high-tax retail, and the practical step is making sure your POS sends tax and tip as separate amounts.

Card-network rules

Network rules apply on top of state law. Under Visa's U.S. rules, a surcharge can only apply to credit cards, never debit or prepaid cards, even when a debit card is run as "credit." It's capped at your merchant discount rate for that card or 3%, whichever is lower. You have to notify your processor 30 days before you start and disclose the surcharge at the point of entry, the point of sale, and as a separate line on the receipt. Visa describes a proper cash discount as posting either the card price only, or the card and cash prices side by side. A pending Visa/Mastercard settlement, with a fairness hearing set for November 16, 2026, may change some network rules if it's approved.

What Illinois businesses ask about

  • Restaurants and bars in Chicago and the suburbs care about tip handling, menu wording for cash and card prices, and whether their POS can send tax and tip amounts separately.
  • Salons, barbers, and spas quote service prices and need both prices on the service list if they use dual pricing.
  • Contractors and repair shops want invoices with card and ACH options, plus a virtual terminal for phone payments.
  • Farm stands, festival vendors, and food trucks need mobile or Bluetooth readers.
  • Professional offices often prefer interchange-plus and one posted price.

Your options, side by side

  1. Dual pricing (optional). Post a cash price and a card price everywhere prices appear.
  2. Interchange-plus. You pay the network cost plus a disclosed fixed markup.
  3. Flat-rate. One rate per transaction, easy to budget.
  4. Square, if you prefer it. We'll include it in your comparison.

Through our processing partners we offer countertop terminals, POS systems, mobile and Bluetooth readers, and virtual terminals. Results depend on your volume, card mix, and current contract, so we don't promise savings before reviewing a statement.

ATMs in Illinois

Cash still moves at taverns, laundromats, street festivals, and county fairs. Illinois also has its own ATM fee-notice rule. Under the Department of Financial and Professional Regulation's rule (38 Ill. Adm. Code 315.410), a terminal that charges a fee has to show a "FEE NOTICE" disclosure with the operator's name and the fee amount and let the customer cancel without paying it. Machines not owned by a bank also need a "CONTACT INFORMATION" notice with the operator's contact details and the state's Division of Banking contact. If you want your own ATM:

  • You buy and own the machine. It's a purchase, not a loan.
  • You load and run it, including how much cash goes in and when.
  • Terms are subject to the partner agreement, and every term is disclosed in writing before you sign.
  • We'll talk through the Illinois notice requirements before installation. We don't promise monitoring, maintenance, or a revenue share. ATM surcharge income isn't guaranteed.
  • Machines come through our ATM partner, and card processing comes through our processing partners.

FAQ

Are credit card surcharges legal in Illinois?

We found no Illinois statute that bans or caps them. Card-network rules apply, and the Consumer Fraud Act prohibits concealing material facts, so disclose any fee before the customer pays.

Does the Interchange Fee Prohibition Act lower my rates now?

No. Its effective date is July 1, 2027, and parts of it are tied up in federal court. We'll update this page if that changes.

Can I surcharge debit cards?

No. Card-network rules don't allow surcharges on debit or prepaid cards.

Is dual pricing allowed in Illinois?

We found no Illinois statute against it. Post both prices before the customer pays, and keep the wording truthful.

Do ATMs in Illinois need special signs?

Yes. State rules require a "FEE NOTICE" disclosure on any terminal that charges a fee, and machines not owned by a bank also need operator contact information.

Who owns an ATM I get through you?

You do. You purchase it outright and run it yourself, and the terms, which are subject to the partner agreement, are disclosed in writing first.

Get a no-obligation comparison

Send a recent statement and tell us how much of your volume is tips or sales tax. We'll compare dual pricing, interchange-plus, flat-rate, and your current setup for your Illinois business. We're based in Clifton, Tennessee, and work with Illinois merchants by phone and email.