Office of the Comptroller of Currency Says Illinois’ Interchange Fee Prohibition Act is “ill-conceived, highly unusual and largely unworkable”
Washington, DC – The Office of the Comptroller of Currency (OCC) filed a scathing amicus brief last week highlighting the glaring flaws in a new credit and debit card law set to take effect on July 1, 2025. The OCC called the law “bad policy and an unlawful interference with federally granted powers.”
“The OCC said it best, the new Illinois law is ‘ill-conceived, highly unusual and largely unworkable’ and would lead to ‘higher fees, reduced services, and weakened fraud protection,’” said Richard Hunt, Executive Chairman of the Electronic Payments Coalition.
In The News:
The Biden administration is asking a federal judge to halt Illinois’ first-in-the-nation law curtailing credit card “interchange fees” before it goes into effect next summer.
Crains: Feds side with banks challenging new Illinois law on credit card swipe fees
The brief, filed [last week], argues that the Illinois Interchange Fee Prohibition Act is “both bad policy and an unlawful interference with federally granted powers.” Federal officials say credit and debit card transactions are vital to the nation’s economy, and the fees financial institutions collect are “fundamental to safe and sound banking.”
Bloomberg: Key Federal Regulator Wants Illinois Swipe Fee Limits Tossed
“A new Illinois law banning the collection of swipe fees on taxes and tips has the potential to “erode” the payments infrastructure and should be thrown out, a key federal banking regulator said.”
Payments Dive: OCC seeks to halt Illinois card interchange fee law
“The Office of the Comptroller of the Currency blasted an Illinois law that prohibits credit and debit card interchange fees on tips and excise taxes.”
Law360: OCC Backs Bid to Block ‘Unworkable’ Illinois Swipe Fee Law
“The measure is an “ill-conceived, highly unusual and largely unworkable” state law that threatens to destroy funding and consumer confidence in the banking system, the OCC warned.”
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