The Office of the Comptroller of the Currency (OCC) today announced an interim final rule and interim final order related to activities of national banks and Federal savings associations. The interim final rule clarifies the longstanding powers under Federal law for national banks to charge certain fees, regardless of whether those fees are set by the bank or a third party.
These preexisting powers under Federal law have recently come into question relative to the Illinois Interchange Fee Prohibition Act (IFPA). The IFPA becomes effective on July 1, 2026, and would create a complex, potentially unworkable, and destabilizing standard for national banks, Federal savings associations, and the nation’s payment card systems. Further, such effects could be exacerbated to the extent other states impose similarly unworkable or conflicting standards.
The OCC’s interim final order confirms that Federal law preempts the IFPA, expressly providing that national banks and Federal savings associations are neither subject to nor required to comply with this State law. These two OCC actions will help prevent the imminent negative effects of the State law’s application to OCC-regulated banks. They do not affect and are not in conflict with the applicability of any other Federal laws that do or may in the future apply to banks regarding payment card activities. Indeed, by appropriately applying preemption to the IFPA, it affirms the ability of the Federal government, including Congress, to set consistent standards governing payment card activities of national banks and Federal savings associations, including as to interchange fees.
Comments on the interim final rule and interim final order are due 30 days after publication in the Federal Register.
