Two important legislative proposals could directly impact your everyday financial experience – and we need your voice to help protect the credit union difference. One proposal, the Interchange Fee Prohibition Act (IFPA), could limit how and where you can use your debit or credit cards, causing confusion, reducing fraud protection, and weakening rewards programs. The other, the “Don’t Tax My Credit Union” initiative, defends our credit union’s tax-exempt status – a vital safeguard that keeps your costs low and returns high. These changes threaten the very benefits that set credit unions apart. Learn more and take action today.

At The Credit Union for All, we’re here to serve you—our members—not big corporations. Every decision we make is focused on making your financial life easier, more secure, and more affordable.

What’s happening:

Unfortunately, a new Illinois law called the Interchange Fee Prohibition Act (IFPA) could seriously disrupt how you use your debit or credit cards in stores and restaurants. This law would force businesses to separate sales tax and tips before calculating card processing fees. That might sound small, but it would change the whole payment process—and not in a good way.

How it affects credit union members directly:

• You might have to pay for taxes or tips separately, possibly even with cash.
• Checking out could become more confusing and inconvenient, especially at local businesses that are not ready or technically equipped for this kind of change.
• It would also expose more of your personal purchase information to multiple parties, raising real privacy concerns for consumers.

Why it matters to your credit union:

Right now, the fees businesses pay to accept cards—called interchange fees—help cover things like fraud protection, payment system security, and keeping your card working 24/7. At The Credit Union for All, those fees help us offer lower loan rates, higher savings returns, and fewer fees for you.

Who’s really behind the law?

The largest corporate megastores lobbied for this proposal, because they stand to benefit. They are projected to save millions of dollars annually, but there’s no requirement that they pass a single penny of that savings on to you. What’s more, small businesses across the state will be burdened with significant costs associated with compliance, without the cost savings that large retailers will enjoy.

Why this is a big deal:

Federal regulators have weighed in calling this law an “ill-conceived, highly unusual, and largely unworkable state law that threatens to fragment and disrupt” the nation-wide payments system. The proposed changes required by the Illinois law haven’t been attempted anywhere in the world.

We believe you deserve better. If this law goes into effect, it’s Illinois consumers who will pay the price— not the big retailers. That’s why we’re encouraging members like you to speak up and help us call for a repeal. Click here to tell your local lawmakers to repeal the IFPA. Your voice truly makes a difference!

Due to our not-for-profit, people-first approach, credit unions do not pay the federal income tax on profits as those profits go back to our members. Congress codified in statute credit unions’ federal income tax status in 1934 with the Federal Credit Union Act. More than 90 years later, the benefits of this status are clear.

• $35+ billion annually in financial benefits to consumer
• 1.2 million jobs supported
• $297 billion in total economic impact each year

Still, credit unions do pay many state and local taxes and fees, including payroll and property taxes. It is also important to note that dividends paid to credit union members mean they pay the taxes on those profits. That’s why a tax on a credit union is a tax on its members.

• $2.2 trillion in state and federal income taxes paid by credit union members in 2023
• $23 billion in federal taxes paid by credit unions in 2023
• $13 billion in state and local taxes paid by credit unions in 2023

For more than 90 years, Congress has preserved the credit union tax status because credit unions uphold the responsibility that comes with being a not-for-profit financial institution: Serving consumers who need them most.

Want to make a difference? By clicking this link, you'll be taken to a pre-written email you can send directly to your local legislators. It only takes a minute – but it sends a powerful message: don’t tax my credit union.