Order Preempting the Illinois Interchange Fee Prohibition Act

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.

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.

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 Bank Policy Institute, The Clearing House Association L.L.C., the Consumer Bankers Association, and the Financial Services Forum strongly support the OCC's order and rule. They argue that the Illinois Interchange Fee Prohibition Act (IFPA) is preempted by the National Bank Act because it significantly interferes with national banks' federally authorized powers to receive compensation for payment card services. The commenters contend that the IFPA would cause substantial revenue losses, impose high compliance costs, and undermine the security and efficiency of the national payment card ecosystem.

The Wisconsin Bankers Association (WBA), a trade association representing nearly 180 banks, strongly supports the OCC's interim final order preempting the Illinois Interchange Fee Prohibition Act. They argue that the act imposes impractical state-specific requirements on national payment infrastructure and would create significant costs and operational risks for banks and the broader economy.

The Pennsylvania Bankers Association supports the OCC's order preempting the Illinois Interchange Fee Prohibition Act to maintain a uniform national banking system. They argue that the state law is operationally impractical, would impose significant costs on processors and consumers, and risks creating a patchwork of inconsistent state-specific regulations.

Velera Solutions, LLC, a payments technology company representing credit unions and community banks, supports the OCC's order pre-empting the Illinois Interchange Fee Prohibition Act. They argue that the act would create a patchwork of state laws, reduce critical revenue for smaller financial institutions, and create significant operational challenges for national payment networks.

Wells Fargo & Company supports the OCC's interim final order and rule, arguing that the Illinois Interchange Fee Prohibition Act (IFPA) is preempted by the National Bank Act. The bank contends that a uniform national banking system is essential for efficiency, and that the IFPA would create a costly, complex patchwork of state regulations that interferes with the bank's ability to process payments and manage data.

PNC Financial Services Group, Inc. supports the OCC's interim final order and rule, arguing that the Illinois Interchange Fee Prohibition Act (IFPA) significantly interferes with national banking powers. The bank contends that the IFPA would impose unprecedented operational burdens, create fraud risks, and destabilize the national payments system by creating a patchwork of state laws.