OCC Issues Two Interim Final Actions Related to Illinois Interchange Legislation

Posted: Apr 30 2026

The Office of the Comptroller of the Currency has announced an interim final rule and interim final order related to preemption of the Illinois Interchange Fee Prohibition Act.

The interim final rule confirms the longstanding powers under federal law for national banks to charge certain fees, regardless of whether those fees are set by the bank or a third party. The preexisting powers under federal law have recently come into question relative to the IFPA, which will become effective on July 1.

The IFPA bans banks, payment networks and other entities from charging or receiving interchange fees in Illinois on the portion of a debit or credit card transaction attributable to tax or gratuity. The American Bankers Association and other groups have challenged the IFPA in federal court. However, earlier this year, a district court judge upheld most of the law, striking down only the portion pertaining to data sharing.

According to the OCC, IFPA would create “a complex, potentially unworkable and destabilizing standard for national banks, federal savings associations, and the nation’s payment card systems,” adding that the “effects could be exacerbated to the extent other states impose similarly unworkable or conflicting standards.”

The OCC’s interim final order confirms that federal law preempts the IFPA, expressly providing that national banks and federal thrifts are neither subject to nor required to comply with this state law. The agency said its actions will help prevent “the imminent negative effects” of the Illinois law’s application to OCC-regulated banks.

“They do not affect and are not in conflict with the applicability of any other federal laws that do or may in the future apply to banks regarding payment card activities,” the agency said. “Indeed, by appropriately applying preemption to the IFPA, it affirms the ability of the federal government, including Congress, to set consistent standards governing payment card activities of national banks and federal savings associations, including as to interchange fees.”

To view the orders, visit:
https://www.occ.gov/news-issuances/bulletins/2026/bulletin-2026-18.html

https://www.occ.gov/news-issuances/bulletins/2026/bulletin-2026-17.html