OCC Interpretive Letters

Federal Preemption Illinois Interchange Fee Act

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.

OCC Issues Interim Final Rule and Order Preempting Illinois Interchange Fee Prohibition Act

The OCC issued two interim final actions on April 24, 2026: an interim final rule clarifying that national banks have longstanding Federal law powers to charge certain fees (regardless of whether set by the bank or a third party), and an interim final order expressly preempting the Illinois Interchange Fee Prohibition Act (IFPA) for national banks and Federal savings associations. The IFPA, which would have become effective July 1, 2026, is characterized by the OCC as creating a complex, potentially unworkable, and destabilizing standard for national banks, Federal savings associations, and the nation's payment card systems. Comments on both actions are due 30 days after Federal Register publication.