Unfortunately, as we’ll explain below, this is one of those issues for which we think you should consult with your bank counsel.

Looked at in isolation, Section 50 of the Illinois EFT Act would not allow you to charge a fee for Link Card withdrawals at ATMs in Illinois. 205 LCS 616/50(j). The Illinois Department of Human Services takes this view, as stated on its website (“The State of Illinois does not allow surcharges on Illinois Link transactions from Illinois ATMs.”) See Link Card Use at Automated Teller Machines (ATMs).   

Having said that, the Illinois EFT Act also provides that if you are in compliance with the federal EFTA, you will be deemed to be in compliance with the Illinois EFT Act. 205 ILCS 616/55IDFPR Interpretive Letter 06-01. Because the federal EFTA has no requirements that limit fees for public aid debit card transactions, and assuming that your bank is in compliance with the federal EFTA in all other respects, a strong argument can be made that your bank is not prohibited from imposing an ATM surcharge on Link Card transactions.

In sum, our analysis leads to the conclusion that such transaction charges are permissible, but this interpretation would clearly be in conflict with the position taken by the Illinois Department of Human Services.