Merchant

Lately there's been a sea change in how tech companies charge for AI, and some banks are balking at the cost. Here's a look at how lenders can rein in their spending.

Banks face conceptual, operational and other hurdles that threaten further adoption of real-time payments.

An employee uploaded customer data to an unauthorized AI app. The bank says it reached the vendor before a model could train on the data.

Gov. Jared Polis, a Democrat, vetoed a bill passed by the state legislature last month that would have barred banks and credit card companies from charging interchange fees on taxes, arguing that the bill would create too much legal risk for businesses and consumers.

A federal judge blocked Illinois from enforcing its interchange fee ban for taxes and tips against national banks and card networks after the Office of the Comptroller of the Currency's recent intervention materially altered the court's preemption analysis.

Lawmakers early on Monday voted to push the effective date of the law, which would ban interchange fees on the tax and tip portions of transactions, to July 1, 2027, marking the second delay as merchants and banks continue to battle in court. 

Retailers say the Office of the Comptroller of the Currency's move to preempt an Illinois law undermines states' powers to curb interchange fees charged in their jurisdictions and perpetuates a system that raises costs for businesses and consumers.

Silent attrition and low small-business adoption are among the challenges to banks' corporate card business.

Trade groups challenging an Illinois state law barring interchange fees on taxes and tips are urging a federal judge to rule by June 3 ahead of the law's July 1 effective date.