TCH Files Amicus Brief Supporting Preemption of Illinois Interchange Fee Prohibition Act
The Clearing House Association joined the Bank Policy Institute and the Consumer Bankers Association in filing an amicus brief with the U.S. District Court for the Northern District of Illinois in the matter of Illinois Bankers Association, et al v. Kwame Raoul. The brief supports the plaintiffs’ arguments that the Illinois Interchange Fee Prohibition Act (IFPA) is preempted by the National Bank Act and other federal laws. IFPA prohibits issuers, networks, processors, and acquirer banks from receiving or charging an Illinois merchant any interchange fee on the portion of a transaction attributable to state or local taxes or tips. It would also prohibit the use of payment transaction data for any purpose beyond processing a payment or as otherwise required by law. Notably, on Wednesday, October 2, 2024, the Office of the Comptroller of the Currency filed an amicus brief also asserting the IFPA is preempted by federal law.
To read the full brief click here.
To read the full brief click here.