OCC preempts Illinois law banning credit card interchange fees

11 articles · Updated · Chicago Tribune · Apr 28

The federal order, issued late Friday, exempts national banks but leaves state-chartered banks and credit unions potentially subject to the Illinois law, which was set to take effect July 1.
Banking associations welcomed the OCC's move, while retailers criticized it as undermining consumer protections. Lawmakers are considering delaying or repealing the law to avoid uneven impacts on smaller financial institutions.
The Illinois law, passed in 2024, bans swipe fees on tax and tip portions of bills. Legal challenges continue, with oral arguments scheduled for May 13 and ongoing debate over the law's future in Springfield.

After this federal block, what is the next battlefield for retailers against swipe fees?

How can Illinois' local banks survive if they face rules that national banks do not?

After swipe fees, is a federal cap on credit card interest rates the next big fight?

Can states still regulate national banks, or does this ruling signal a major power shift?

With low-cost payment tech like FedNow, are high credit card swipe fees becoming obsolete?

Will my credit card rewards disappear if banks lose the ongoing swipe fee fight?