Illinois Wants to Make Tipping Awkward AF: Why You Might Soon Swipe Twice and Still Hate It

Ah, Illinois—land of deep-dish pizza, corrupt governors, and now, a lawsuit that could change how you pay for literally anything.

Buckle up, because credit card companies are super upset about a new state law banning interchange fees on tips and taxes. You know, those tiny fees that are just small enough for you to ignore but big enough to fund your Chase Sapphire reward points?

Wait, What Are Interchange Fees Again?

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Let’s simplify: Every time you swipe your card, the credit card company and bank take a little cut—around 2%—from the business.

Illinois lawmakers decided, "Hey, maybe they shouldn’t take that cut on sales tax and tips because...well, it’s kind of shady.” Seems reasonable, right? Wrong, according to banks and credit card companies.

Their argument? If this law goes into effect, you'll need to swipe your card twice—once for your bill and again for the tip or sales tax. Why? Apparently, their advanced payment systems that already calculate your 17-item Starbucks order can’t handle separating a tax from a latte.

The Merchants Are Over It

The Illinois Retail Merchants Association says the “swipe twice” theory is nonsense and supports the law because it could save businesses (and maybe you) money. However, the credit card lobbyists are crying foul, claiming this change would be harder to implement than getting Taylor Swift tickets during a Ticketmaster meltdown.

When Does This Circus Start?

If the law survives a federal court challenge, it’ll kick in on July 1, 2025—giving banks and credit card companies plenty of time to figure it out, yet not enough, according to their lawyers.

One attorney called it "very, very hard to know how" to implement. Really? Because my phone can split dinner bills down to the penny, and it didn’t even go to law school.

What’s Next?

If this law stands, businesses might just stop accepting cards altogether. So, prepare to carry cash like it’s 1999 or risk awkwardly explaining to your server why you’re tipping 20%... next week.

As for the credit card companies? Don’t worry—they’ll find a way to keep getting their cut. They always do.

Illinoispolicy.org has more.

MORE: 5 Most Expensive Places to Live In Illinois