Illinois Interchange Fee Litigation Takes important Turn: OCC Rule Leads Court to Enjoin Core IFPA Interchange Fee Restrictions

A federal district court in Illinois significantly altered its position on interchange fee restrictions after the OCC amended its regulations, issuing a permanent injunction barring Illinois from enforcing the Interchange Fee Prohibition Act against national banks, federal savings associations, certain out-of-state banks, and payment card networks. The pivotal change came from the OCC’s amended regulation clarifying that national banks can receive interchange fees directly or indirectly through intermediaries, partners, and payment networks, which the court found directly addressed the concern that had driven the earlier February decision.