Illinois Compiled Statutes
Chapter 50 - LOCAL GOVERNMENT
50 ILCS 345/ - Local Governmental Acceptance of Credit Cards Act.

(50 ILCS 345/1)
Sec. 1.
Short title.
This Act may be cited as the Local Governmental
Acceptance of Credit Cards Act.

(Source: P.A. 90-518, eff. 8-22-97.)
 
(50 ILCS 345/10)
Sec. 10.
Definitions.
"Authorized obligation" means, in connection with a county, city, town, or
other similar form of local municipal government, any fine, fee, charge, tax,
or
cost imposed by, owing to, or collected by or on behalf of a unit of local
government. In connection with a
community college district,
"authorized obligation" means tuition costs, books, charges for meals,
and other education or college-related fines,
fees, charges, or costs imposed upon or incurred by students or pupils.
"Credit card" means an instrument or device, whether known as
a credit card, bank card, charge card, debit card, automated teller machine
card, secured credit card, smart card, electronic purse, prepaid card, affinity
card, or by any other name, issued with or without fee by an issuer
for the use of the holder to obtain credit, money, goods, services, or anything
else of value.

(Source: P.A. 90-518, eff. 8-22-97.)
 
(50 ILCS 345/15)
Sec. 15. Local government credit card acceptance program.
(a) Any unit of local government and any community college district
that
has the authority to accept the payment of funds for any purpose is authorized,
but not required, to accept payment by credit card.
(b) This Act shall be broadly construed to authorize, but not require,
acceptance of credit card payments by all units
of local government and community college districts.
(c) This Act authorizes the acceptance of credit card payments for all types
of authorized obligations.
(d) This Act does not limit the authority of clerks of court to accept
payment by credit card pursuant to the Clerks of Courts Act or the Unified Code
of Corrections.
(e) A local governmental entity may not receive and retain, directly or
indirectly, any convenience fee, surcharge, or other fee in excess of the
amount paid in connection with
the credit card transaction. In addition, a financial institution or service
provider may
not pay, refund, rebate, or return, directly or indirectly, to a local
governmental entity for final retention any portion of a surcharge, convenience
fee, or other fee
paid in connection with a credit card transaction.

(Source: P.A. 102-558, eff. 8-20-21.)
 
(50 ILCS 345/20)
Sec. 20. Election by local governmental entities to accept credit cards.
(a) The decision whether to accept credit card payments for any particular
type of obligation shall be made by
the governing body of the local governmental entity that has general
discretionary authority over the manner of
acceptance of payments.
The governing body may adopt
reasonable rules governing the manner of acceptance of payments by credit card.
Except as provided in subsection (b) of Section 20-25 of the Property Tax Code, no decision to accept credit card payments under this Act shall be made until
the governing body has determined, following a public hearing held not sooner
than 10 nor later
than 30 days following public notice of the hearing, that the acceptance of
credit card payments for the types of authorized obligations specified in the
public notice is in the best interests of the citizens and governmental
administration of the local governmental entity or community college
and of the students and taxpayers thereof.
(b) The governing body of the entity accepting payment by credit card may
enter into agreements with one or more financial institutions
or other service providers to facilitate the acceptance and processing of
credit card payments.
Such agreements shall identify the specific services to be provided,
an itemized list of the fees charged, and the means by which each such fee
shall be paid. Such agreements may include a discount fee to cover the costs
of
interchange, assessments and authorizations, a per item processing fee for the
service provider, and any other fee, including a payment of a surcharge or
convenience fee, that may be applicable to specific circumstances.
Any agreement for
acceptance of payments by credit cards may be canceled by the governmental
entity upon giving reasonable notice of intent to cancel.
(c) An entity accepting payments by credit card may pay amounts due
a financial institution or other service provider by (i) paying the
financial
institution or other service provider upon
presentation
of an invoice or (ii) allowing the financial institution or other service
provider to withhold the amount of
the fees from the credit card payment. A discount or processing fee may be
authorized whenever the governing body of the entity determines that any
reduction of revenue resulting from the discount or processing fee will be in
the best
interest of the entity.
Items that may be considered in making a determination to authorize the payment
of fees or the acceptance of a discount include, but are not limited to,
improved governmental cash flows, reduction of governmental overhead, improved
governmental financial security,
a combination of these items, and the benefit of increased public convenience.
No payment to or withheld by a financial institution or other service provider
may exceed the amounts authorized under subsection (b) of Section 25.
(d) Unless specifically prohibited by an ordinance or rule adopted by the
governing body of the local governmental entity, a person may pay multiple tax
bills in a single transaction.

(Source: P.A. 96-1248, eff. 7-23-10.)
 
(50 ILCS 345/25)
Sec. 25.
Payment of fees by cardholders.
(a) The governing body of a local
governmental
entity authorizing acceptance of payment by credit card may, but is not
required to, impose a convenience fee or surcharge upon a cardholder making
payment
by credit
card in an amount to wholly or partially offset, but in no event exceed, the
amount of
any discount or processing fee incurred by the local
governmental entity. This convenience
fee or surcharge
may be applied only when allowed under the operating rules and
regulations of the credit card involved. When a cardholder elects to make a
payment by credit card to a local governmental entity and a convenience fee
or surcharge is
imposed, the payment of the convenience fee or surcharge shall be deemed
voluntary by the
person and shall not be refundable.
(b) No fee, or accumulation of fees,
that exceeds the lesser of $20 or 5% of the principal amount charged
may be imposed in connection with the
issuance of any license, sticker, or permit, or with respect to any other
similar transaction. No fee, or accumulation of fees, that exceeds
the lesser of $5 or 5% of the transaction involved may be imposed in connection
with the payment of any fine. No fee, or accumulation of fees, in excess of
the lesser of $40 or 3% of the principal amount charged may be imposed in
connection with the payment of any real estate or other tax.
(c) Notwithstanding the provisions of subsection (b), a minimum fee of $1
may be imposed with respect to any transaction.
Notwithstanding the provisions of subsection (b), a fee in excess of the
limits in
subsection (b) may be imposed by a local governmental entity on a transaction
if (i) the fee
imposed by the local governmental entity is no greater than a fee charged by
the financial
institution or service provider accepting and processing credit card payments
on behalf of the
local governmental entity; (ii) the financial institution or service provider
accepting and
processing the credit card payments was selected by competitive bid and, when
applicable, in
accordance with the provisions of the Illinois Procurement Code; and (iii) the
local governmental
entity fully discloses the amount of the fee to the cardholder.

(Source: P.A. 92-114, eff. 1-1-02.)
 
(50 ILCS 345/30)
Sec. 30.
Relief from underlying obligation.
A person who makes a payment
by credit card to a local governmental entity shall not be
relieved from liability for
the underlying obligation except to the extent that the local
governmental
entity
realizes final payment of the underlying obligation in cash or the equivalent.
If final payment is not made by the credit card issuer or other guarantor of
payment in the credit card transaction, then the underlying obligation shall
survive and the local governmental entity shall retain all
remedies
for
enforcement
that would have applied if the credit card transaction had not occurred. A
person making payment by credit card is not liable for any discount or fee paid
to a credit card issuer or other party by a
local governmental entity.

(Source: P.A. 90-518, eff. 8-22-97.)
 
(50 ILCS 345/35)
Sec. 35.
Liability of local governmental employees.
A local governmental
employee
who accepts payment by credit card in accordance with this Act and any
applicable rules shall not incur personal liability for the final collection of
the payment.

(Source: P.A. 90-518, eff. 8-22-97.)
 
(50 ILCS 345/95)
Sec. 95.
(Amendatory provisions; text omitted).

(Source: P.A. 90-518, eff. 8-22-97; text omitted.)
 
(50 ILCS 345/99)
Sec. 99.
Effective date.
This Act takes effect upon becoming law.

(Source: P.A. 90-518, eff. 8-22-97.)

Structure Illinois Compiled Statutes