The update concerns federal preemption of state interchange fee regulation and the OCC's reaffirmation of national banks' authority to charge interchange fees, which directly relates to card scheme network pricing and regulatory governance.
Low confidence — requires human review. While the update addresses interchange fees charged by banks to acquirers and merchants, the focus is on regulatory preemption rather than acquiring operations themselves.
Specialism
The update concerns federal preemption of state interchange fee regulations, which directly relates to surcharging and fee regulation in payment systems.
Low confidence — requires human review. The OCC's regulatory action and the broader policy dispute involve supervisory and regulatory authority, but the primary focus is interchange fee regulation rather than ongoing supervision.
2026-06-01 13:11:47·pdonofrio@vixio.com
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ABA joined other associations in submitting letters expressing support for recent actions by the OCC to reaffirm federal preemption of state attempts to regulate interchange fees.
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TITLE: American Bankers Association Reaffirms Support for Federal Preemption of Illinois Interchange Law
BODY:
On May 29, 2026, the American Bankers Association (ABA) joined other national and state banking associations in submitting letters supporting recent actions by the Office of the Comptroller of the Currency (OCC) to reaffirm federal preemption of state attempts to regulate interchange fees.
In April 2026, the OCC issued an interim final order confirming that federal law preempts the Illinois Interchange Fee Prohibition Act (IFPA), enacted into law in 2024. The OCC simultaneously issued an interim final rule confirming longstanding federal powers for national banks to charge a broad range of fees, regardless of whether those fees are set by the bank or a third party. The ABA and state bankers associations argued that the OCC's actions provide regulatory certainty to bank customers and financial institutions. In their letter, the associations stated: "To avoid such a balkanization of today's uniform payments ecosystem that would invariably limit American consumers' and American businesses' access to financial services on which they rely daily, our uniform national bank system and its constituent parts must, as the OCC expressly recognizes, always be defended from impermissible state overreach."
The development is significant as other states have begun exploring similar legislation. Colorado lawmakers recently passed legislation to ban the collection of interchange fees on sales taxes, with Governor Jared Polis yet to decide whether to sign or veto the bill. Additionally, the ABA, the Illinois Bankers Association, and other groups have challenged the IFPA in court. The OCC's preemption actions aim to maintain a uniform national payments system and prevent a patchwork of state-level interchange regulations that could restrict access to financial services.