Federal Preemption Illinois Interchange Fee Act
Summary
The OCC has issued an interim final order concluding that federal law preempts the Illinois Interchange Fee Prohibition Act, which sought to prohibit national banks and federal savings associations from charging interchange fees on the tax and gratuity portions of payment card transactions and to restrict the use of payment card transaction data. Under this order, national banks and federal savings associations are neither subject to nor required to comply with the Illinois statute. The OCC is accepting comments on all aspects of the interim final order for 30 days following its publication in the Federal Register.
“National banks and federal savings associations are neither subject to nor required to comply with this state law.”
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What changed
The OCC has issued an interim final order declaring that the Illinois Interchange Fee Prohibition Act is preempted by federal law. The order specifically addresses two provisions of the Illinois law: the prohibition on charging or receiving interchange fees on the tax and gratuity portions of payment card transactions, and the restrictions on use of payment card transaction data.\n\nNational banks and federal savings associations should be aware that the Illinois state law does not apply to their operations. This preemption determination may affect similar legislative efforts in other states. The OCC is accepting public comments for 30 days following Federal Register publication.
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Apr 25, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
OCC Bulletin 2026-17 | April 24, 2026
Preemption of Illinois Interchange Fee Prohibition Act: Interim Final Order
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Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties
Summary
The Office of the Comptroller of the Currency (OCC) is announcing an interim final order concluding that federal law preempts the Illinois Interchange Fee Prohibition Act. National banks and federal savings associations are neither subject to nor required to comply with this state law. Comments on all aspects of the interim final order are due 30 days after it is published in the Federal Register.
Note for Community Banks
The interim final order will apply to all community banks.
Highlights
This interim final order
- concludes that federal law preempts the Illinois Interchange Fee Prohibition Act, which purports to (1) prohibit national banks and federal savings associations from charging or receiving interchange fees on the tax and gratuity portions of payment card transactions; and (2) restrict the use of payment card transaction data.
- complements the OCC’s interim final rule clarifying national banks’ power to charge non-interest charges and fees, which the agency is concurrently issuing.
Further Information
Please contact Karen McSweeney, Special Counsel; Priscilla Benner, Counsel; or Elizabeth Small, Counsel, Chief Counsel’s Office, at (202) 649-5490.
Will C. Giles
Principal Deputy Chief Counsel
Related Link
- Order Preempting the Illinois Interchange Fee Prohibition Act: Interim Final Order (PDF) 1 “Banks” refers collectively to national banks, federal savings associations, covered savings associations, and federal branches and agencies of foreign banking organizations. OCC News Release 2025-89 (September 18, 2025) identifies “community banks” as institutions with up to $30 billion in assets.
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