This Week in Credit Cards: Interchange at Risk in Illinois

This week began with American television viewers grumbling about the entertainment value of this year’s Super Bowl. But while the big game may have been lacking in excitement, the credit card world saw a flurry of events that kept industry insiders tuned in to see what may happen next.

We’ve compiled a roundup of this week’s biggest stories on the card front to help you keep track of what you need to know.

The fight over interchange in Illinois took a turn this week when a U.S. District Court Judge ruled in favor of the state’s move to ban swipe fees on taxes and tips. 

Merchant groups came out in support of the ruling, with the Merchant Payments Coalition releasing a statement that labeled it a major victory. 

On the other hand, the co-plaintiffs, including the American Bankers Association and America’s Credit Unions, expressed their disappointment with the decision. The banking groups suggested that the judge’s ruling won’t be the final word on the matter as they called on lawmakers to take action in support of their cause.

The credit card industry has had a rough start to the year as politicians have called for a cap on interest rates and a limit on card late fees. But a new report from the Federal Reserve Bank of New York indicates that credit cards continue to be popular payment tools.

Credit card balances increased by $44 billion during the fourth quarter of 2025 to hit a total of $1.277 trillion. Only time will tell whether those growing balances ultimately nudge cardholders to turn to other methods of payment such as buy now, pay later tools.

The New York Fed reported that mortgage and student loan balances also rose during the fourth quarter.

Europe is seeking to rely less on leading card networks Visa and Mastercard. A Financial Times report reveals that several countries in the region don’t have national alternatives to the two networks.

Visa and Mastercard make up the bulk of card transactions in the eurozone in the recent past. But some worry that could be a problem should relations sour between European countries and the U.S.

The in-depth CardRates report on the issue reveals that Europeans aren’t in favor of being overly dependent on foreign payment systems.

Bank of America wants to double the annual profit it earns from consumers by the end of the decade. To help accomplish that goal, the banking giant is updating its approach to credit cards. 

Bank of America is planning to announce new rewards for customers who carry larger balances on their credit card accounts, according to Bloomberg. 

Consumers continue to value credit card rewards. A number of major players in the card space unveiled new rewards programs in 2025. And, with Bank of America’s plans, 2026 may prove to be an eventful year in the rewards arena as well.

February will be the last full month that sports bettors can use their credit cards to make deposits with FanDuel Sportsbook. The company will no longer accept them beginning March 2. 

Sen. Elizabeth Warren (D-MA) came out in favor of the move, saying that the rest of the industry should take similar steps, according to ESPN. Credit card issuers are likely to see reductions in total transaction volume following the company’s decision.  

Fans of the 31 teams that didn’t win this year’s Super Bowl have a long off-season before them to stew about what could have been. 

But credit cards don’t have an off-season. New developments in the card space can happen every day. And you can count on the CardRates team to keep you updated on all the major stories impacting the industry.