Federal Court Enjoins Certain Swipe Fee Limitations, Others React

A federal district judge in Illinois issued an opinion and order on June 1, 2026, permanently enjoining enforcement of the Illinois Interchange Fee Prohibition Act’s (IFPA) interchange fee limitation against: (i) national banks; (ii) banks chartered in states other than Illinois that are subject to the Riegle-Neal Act; (iii) federal savings associations; and (iv) other entities that facilitate the applicable powers of these entities.  The opinion and order additionally referred back to the court’s prior ruling that the data usage limitation is preempted or invalid as to those same entities plus federal credit unions.

As background, this district court originally had upheld the interchange fee limitation, but enjoined the data usage limitation (see WBK’s prior coverage here).  The OCC then issued an interim final rule clarifying that national banks (and their third-party providers) may charge interchange fees, and an interim final order establishing that key provisions of IFPA were preempted (see WBK’s prior coverage here).  Then, on appeal, the Seventh Circuit vacated the district court’s ruling and remanded the case for the district court to consider the OCC’s rule and order (see WBK’s prior coverage here).  After the remand, the district court issued the June 1 opinion and order.

Shortly thereafter, the plaintiffs submitted a notice of supplemental authority that the National Credit Union Administration (NCUA) had issued an interim final rule affecting the permanent injunction.  According to plaintiffs, the interim final rule confirms that the Federal Credit Union Act (FCUA) grants federal credit unions the authority to charge fees, such as interchange fees, and clarifies that the FCUA preempts any state law affecting those fees.

Two days later, the district court entered a permanent injunction order that matched the June 1 opinion and order, but did not address plaintiff’s notice of supplemental authority.  Plaintiffs then filed with the district court a motion to reconsider, in part, the original ruling because of the NCUA’s interim final rule.  On June 16, the district court held on entering final judgment in light of plaintiffs’ briefing and set an additional briefing schedule.

IFPA was set to go into effect on July 1, 2026, but the Illinois General Assembly recently passed a bill moving the effective date to July 1, 2027.  The bill has not been signed by the Governor yet.