OCC Submits Interim Final Rule and Preemption Determination on Illinois Interchange Fee Prohibition Act
Summary
On April 14, 2026, the OCC submitted two documents to the OMB's Office of Information and Regulatory Affairs for review under Executive Order 12866: an interim final rule titled 'National Bank Non-Interest Charges and Fees' (RIN 1557-AF54) and a preemption determination titled 'Order Preempting the Illinois Interchange Fee Prohibition Act' (RIN 1557-ZA10). These actions address the applicability of the Illinois Interchange Fee Prohibition Act to national banks and relate to ongoing litigation currently on appeal before the 7th Circuit.
“As an interim final rule, it could take effect immediately upon publication in the Federal Register without prior notice-and-comment rulemaking.”
National banks with operations in Illinois should track the Federal Register for publication of the OCC's interim final rule and preemption determination — as interim final rules, both could take effect immediately upon publication without a prior comment period. Institutions that have structured payment network arrangements around the Illinois IFPA's July 1 effective date should review those arrangements against the scope of any preemptive order.
What changed
The OCC has submitted an interim final rule and preemption determination to OMB for review, addressing whether the Illinois Interchange Fee Prohibition Act applies to national banks. The interim final rule relates to national banks' authority to charge interchange fees under the National Bank Act, while the preemption determination, issued pursuant to 12 U.S.C. § 25b, would preempt the Illinois statute. These documents were submitted as part of ongoing 7th Circuit litigation over the Illinois law.
National banks operating in Illinois should monitor these submissions closely, as an interim final rule could take effect immediately upon Federal Register publication without prior notice-and-comment rulemaking. The Illinois Interchange Fee Prohibition Act, which bans interchange fees on the tax or gratuity portions of transactions, remains scheduled to take effect on July 1 pending the outcome of this litigation and any federal preemption determination.
Archived snapshot
Apr 20, 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.
April 20, 2026
OCC submits interim final rule, preemption determination to OMB on Illinois Interchange Fee Prohibition Act’s applicability to national banks
On April 14, the OCC submitted an interim final rule and a preemption determination to the OMB’s Office of Information and Regulatory Affairs (OIRA) for review under Executive Order 12866 (as amended). The interim final rule, titled “National Bank Non-Interest Charges and Fees” (RIN 1557-AF54), appears to relate to national banks’ authority to charge and receive interchange fees under the National Bank Act. If so, the rule would be analogous to a proposed rule published by the OCC in December 2025 relating to national banks’ authority to determine whether or not to provide borrowers interest on their escrow accounts (covered by InfoBytes here). As an interim final rule, it could take effect immediately upon publication in the Federal Register without prior notice-and-comment rulemaking. The preemption determination, presumably issued pursuant to 12 U.S.C. § 25b, is titled “Order Preempting the Illinois Interchange Fee Prohibition Act” (RIN 1557-ZA10). These actions relate to ongoing litigation over the Illinois Interchange Fee Prohibition Act (IFPA), which bans interchange fees on the tax or gratuity portions of a transaction and is scheduled to take effect on July 1. As previously covered by InfoBytes, the case is currently on appeal before the 7th Circuit, which scheduled oral argument for May 13.
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