CHICAGO (WGN) — Charging your credit card at a restaurant or grocery store could change this summer if one swipe won’t cover the tax or tip.

It’s the first law of its kind in the country. While some feel it will save businesses money, banks aren’t happy about the change. 

“In the restaurant business, we operate on very thin margins. Every decision matters. Even small disruptions can have a huge impact on our bottom line,” said Tremaine Branch, a Peoria restaurant owner concerned about the Interchange Fee Prohibition Act, which becomes law in Illinois on July 1.

As it stands now, when you swipe your credit or debit card for a purchase, the retailer’s bank pays an “interchange fee” to the consumer’s bank, typically around 2-3%. The Interchange Fee Prohibition Act would eliminate those fees on the tip and tax portions of the transaction. 

The legislation was proposed to address concerns that businesses incur costs on money that isn’t part of their revenue for goods and services. After the bill passed, a group of financial institutions filed a lawsuit in 2024, and in March, a federal judge upheld the law. 

Sam Toia, with the Illinois Restaurant Association, believes the legislation could benefit business owners. 

“I have every faith banks can flip the software, we’re in 2026, to figure this out,” he said. “We’re out here fighting for our small independent restaurants throughout the state of Illinois that will save no swipe fees to our independent restaurants on taxes and tips. That will save them quite a bit of money.”

Businesses that don’t comply would face a $1,000-per-transaction penalty, however.

“There’s no workable technology in place right now that can actually do what this law requires,” said Ben Jackson, an executive vice president of government relations at Illinois Bankers Association. “It’s completely unknown whether Illinois businesses with that July 1 implementation date could put this law into practice.”

Businesses should check with their payment processor to update software and learn how to adjust their systems before July 1.

Two Chicago suburbs were named on a new list of the best places to live in the U.S. in 2026.

In the annual “best places to live” report from ranking website Livability, a northern suburb and a western suburb were both named among the top 20 places to live in the U.S.

“Our 2026 list highlights the small- to mid-sized cities where your paycheck goes further, your commute is shorter and your quality of life comes first,” the publication wrote.

The ranking looked at more than 100 factors across more than 2,000 cities when compiling its list, including things like housing and affordability, amenities and environment, safety, health, education and transportation. Extra weight was given to the category of housing and cost of living as the publication said “we recognize that Americans face a higher cost of living than ever before.”

Cities included in the list had median home values under $500,000 and populations between 75,000 and 500,000 people.

“If it isn’t attainable, it isn’t on our list,” Livability wrote.

While no Illinois city took the top spot on the list, Naperville ranked in the top five, coming in at No. 4. Evanston followed at No. 13.

It marks the second list to name Naperville among the “best places to live in the U.S.,” with a recent ranking from Niche also dubbing the suburb among the top.

Other Midwest cities also made the cut, including Carmel, Indiana, at No. 2; Troy, Michigan, at No. 7; and Bloomington, Minnesota, at No. 18.

The top spot on the list was Huntsville, Alabama.

See the full ranking here.