Payments News Update – June 5, 2026
Legal and Regulatory Developments
SPOTLIGHT: Illinois Lawmakers Again Delay Card Fee Law
Payments Dive – June 1, 2026
Illinois lawmakers voted to delay until 2027 a state law banning interchange fees on the tax and tip portion of bills, the second one-year delay for a statute mired in litigation. The implementation votes Sunday and early Monday came as the General Assembly wrapped its legislative session, with the measure awaiting Gov. JB Pritzker’s signature.
Separately, in comments filed Friday with the Office of the Comptroller of the Currency – which is seeking to preempt the law with a rule change – 12 consumer groups blasted the OCC’s move.
“It is hard to overstate the hard pivot the OCC is undertaking in the name of protecting the profitability of banks and payment networks,” the groups wrote in their comment letter. “Now, fee-fixing is explicitly allowed, so long as it is done via third parties. The OCC’s admonitions about competition are no longer even lip service.”. . .
Colorado Rejects Illinois-Style Interchange Fight as Polis Blocks SB26-134
CU Today – June 3, 2026
Colorado Gov. Jared Polis has vetoed SB26-134, the controversial interchange-fee bill that would have prohibited card issuers and payment networks from charging interchange on the sales-tax portion of transactions, handing credit unions, banks and payments companies a significant victory and avoiding what many feared would become another Illinois-style legal and operational battle.
The bill had cleared the Colorado legislature earlier this month and was modeled in part on Illinois’ Interchange Fee Prohibition Act (IFPA), which remains the subject of ongoing litigation involving America’s Credit Unions, the Illinois Credit Union League, the American Bankers Association and other financial-services organizations.
Industry groups argued Colorado’s measure would require extensive changes to payment-processing systems, create compliance challenges and expose financial institutions to new litigation risks. . . .
Ill. Swipe-Fee Law Blocked for Most Banks, Slated for Delay
Law360 – June 1, 2026 (subscription required)
A Chicago federal judge ruled Monday that Illinois cannot enforce its landmark ban on tax-and-tip swipe fees against most banks, handing the banking industry a major legal win the same day that state lawmakers voted separately to delay the ban altogether until next year.
The 28-page decision from U.S. District Judge Virginia Kendall institutes a broader injunction against the Illinois Interchange Fee Prohibition Act after the Office of the Comptroller of the Currency amended its fee-setting rules in April to shield banks under its oversight from the law.
Although Judge Kendall expressed skepticism of a parallel OCC order that declared the Illinois law preempted, she concluded its rule change altered the landscape enough to render the swipe-fee restrictions “invalid” for national banks and federal thrifts, which the OCC regulates. . . .
Clarity Act’s Global Reach Looms Over Senate Vote
Competition Policy International – May 31, 2026
As Congress moves toward a final showdown over the Digital Asset Market Clarity Act, the debate is increasingly extending beyond U.S. borders, with supporters and critics alike arguing that the legislation could shape cryptocurrency regulation far beyond Washington.
The bill, which would establish a comprehensive federal framework for digital assets, is approaching a critical Senate vote after surviving a closely watched committee battle.
While much of the discussion has focused on the measure’s impact on the domestic crypto industry, stakeholders say the legislation’s significance stems in part from the outsized role the United States plays in the global financial system. . . .
Another State Grapples With Debit Fee Surcharges
PaymentsJournal – May 29, 2026
As merchants and cardholders continue to pass the hot potato of surcharges back and forth, Louisiana is on the verge of imposing stiff penalties on retailers that add additional charges to debit card purchases.
The legislation has passed both the Louisiana Senate and House of Representatives and now awaits the governor’s signature.
If enacted, it would give the Attorney General’s Office authority to impose civil penalties of up to $500 per violation and require the state to set up both a toll-free hotline and an online reporting system for consumers to submit receipts. . . .
Industry Developments
SPOTLIGHT: How High-End Credit Card Perks Are Hurting Shoppers Who Pay in Cash
NBC News – June 1, 2026
At the Tiger Fuel gas station and convenience store near the foothills of the Blue Ridge Mountains, the managers expect to pay more in fees to credit card companies this year than they will on rent — one more expense weighing on the company and its customers amid the surging price of gas.
Those credit card fees — which can be 2% or higher for some premium cards offering luxury perks and hefty rewards — have been contributing to higher prices and limiting how much the store can spend on other areas, like wages, said Maurice Lamarche, vice president of retail operations for Tiger Fuel Co.
“It’s tougher for us to stay afloat, tougher for us to make money at our stores,” Lamarche said. “It makes it harder for us to keep our prices low.” . . .
Payment Giants Stripe, Visa, Mastercard Said to Be Among Backers of Soon-to-Debut Stablecoin Platform
CoinDesk – June 3, 2026
Global payment networks Stripe, Visa and Mastercard are close to introducing a new stablecoin platform, according to three people familiar with the plans.
U.S.-listed cryptocurrency exchange Coinbase (COIN) is also looking into the possibility of participating in the stablecoin platform, one of the people said.
Coinbase, Stripe and Visa declined to comment. Mastercard had not responded to requests for comment by publication time. . . .
Mastercard Rearranges Leadership
Payments Dive – June 2, 2026
Mastercard promoted Ling Hai to chief financial officer as part of several leadership changes effective on Aug. 3, according to a Tuesday press release. He is currently president of Asia Pacific, Europe, Middle East and Africa and will bring international and commercial experience to the role, the release said.
The card network’s current CFO, Sachin Mehra will shift to the newly created job of chief business officer, taking responsibility for operations across the globe, including some aspects of sales as well as global partnerships and digital commercialization.
In addition, Linda Kirkpatrick, who is currently president of the Americas, will take on the role of chief services officer as the executive currently in that role, Craig Vosburg, becomes vice chair of the company’s board and a “a global ambassador” for the company. Meanwhile, the current vice chair, Tim Murphy, is expected to retire, as previously planned, in October. . . .
Early Warning Launches an Ad Campaign for Paze, Its Online Checkout
Digital Transactions News – June 1, 2026
Early Warnings Services LLC told Digital Transactions News in March that a marketing push for its 3-year-old Paze online checkout platform would be starting in coming months.
Early Monday, that push arrived with the launch of a national campaign running on TV, digital video, and social platforms.
The new advertising effort, which arrives as Paze climbs to more than 200 million U.S. credit and debit cards eligible for checkout, features actresses Elizabeth Banks and Gabrielle Union in roles meant to emphasize the simplicity of using Paze to buy online. . . .