Order Preempting the Illinois Interchange Fee Prohibition Act

The National Retail Federation (NRF) opposes the OCC's interim final order and rule, arguing that the Illinois Interchange Fee Prohibition Act (IFPA) is a valid state law that should not be preempted. They contend that the OCC is exceeding its statutory authority, violating procedural requirements of the Administrative Procedure Act, and attempting to protect an anticompetitive interchange fee system that burdens retailers and consumers.

The Colorado Bankers Association supports the OCC's order because it defends federal preemption against state-level interchange restrictions. They argue that a fragmented regulatory environment threatens the consistency, reliability, and uniformity of the national payments system.

The American Bankers Association and 52 state and territorial bank associations support the OCC's order preempting the Illinois Interchange Fee Prohibition Act. They argue that the action provides necessary regulatory certainty, protects the uniform national banking system from state overreach, and prevents the "balkanization" of the payments ecosystem.

Chime Financial, Inc., a financial technology company, supports the OCC's interim final order because it maintains uniformity in the national payment card system and protects the interchange-based revenue model that funds their products. They argue that the Illinois Interchange Fee Prohibition Act would create operational burdens, fragment the payment ecosystem, and potentially increase costs for consumers and small businesses.

Bankers Trust Company, a state-chartered non-member bank, supports the OCC's interim final order pre-empting the Illinois Interchange Fee Prohibition Act. The bank argues that state-level interchange laws create a patchwork that would fracture the national payment network and make it technically impossible for banks to isolate transactions by state.

L Gary, representing Wildwood Cotton Technologies, a farmer-owned business, supports the OCC's order preempting the Illinois Interchange Fee Prohibition Act. He argues that the state law would create a confusing patchwork of regulations, increase costs for businesses operating across state lines, and disrupt the stability of the national payments system.

Amber Gellar-Smith, owner of a small independent bookstore, opposes the OCC's order because it allows banks to continue charging interchange fees on sales tax and gratuities. She argues that these fees unfairly burden small businesses and that states should have the authority to protect local businesses from such practices.

The owner of Flyby Provisions, a small gift shop, supports the OCC's decision to preempt the Illinois Interchange Fee Prohibition Act. They argue that state-specific payment rules create unnecessary complexity and costs for small businesses that rely on consistent, national payment systems for e-commerce and local sales.

TD Bank, N.A. supports the OCC's order because it prevents a fragmented state-by-state regulatory environment that would create significant operational risks and costs. The bank argues that the Illinois Interchange Fee Prohibition Act is unworkable, would require expensive system redesigns, and could destabilize the federal banking system.

The National Lumber and Building Material Dealers Association (NLBMDA) opposes the OCC's Interim Final Order, arguing that it unfairly protects the revenue of payment networks and card issuers at the expense of small and mid-sized merchants. They contend that the Illinois Interchange Fee Prohibition Act (IFPA) is a valid state law that addresses the "indefensible inequity" of charging swipe fees on taxes and gratuities, which are not merchant revenue.