#USA #Washington #OCC #Electronic Transactions Association #Interchange Fee Prohibition Act

ETA Applauds OCC's Action Against Illinois Interchange Fee Prohibition Act

On April 24, 2026, the Electronic Transactions Association (ETA) expressed its support for the Office of the Comptroller of the Currency (OCC) regarding their interim final rules that preempt the Interchange Fee Prohibition Act (IFPA). This decision is pivotal in maintaining the integrity and stability of the payments system in the United States.

The payments industry plays a vital role in the U.S. economy, generating an impressive $354 billion in GDP in the previous year and sustaining approximately 2 million jobs across the nation. The enactment of the IFPA would disrupt the efficient operations of this global payments system, adversely affecting both merchants and consumers, especially small businesses that rely on these streamlined payment processes.

Jodie Kelley, the CEO of ETA, emphasized the importance of the OCC’s recent actions, noting, "The OCC recognizes the value of the national/global payments industry to consumers, merchants - especially small merchants - and the U.S. economy." With the OCC confirming that the IFPA is preempted, they have provided a significant layer of clarity, stability, and legal certainty that is essential for the seamless functioning of U.S. payment systems.

Kelley further remarked, "This rule reinforces what courts, Congress, and regulators have recognized for generations. A fragmented, state-by-state approach to national payment activities would undermine efficiency, increase costs for consumers and businesses, and jeopardize the reliability of secure electronic payments." The unanimous sentiment stemming from these statements reiterates the need for a cohesive national framework to support the evolving landscape of digital payments.

The Electronic Transactions Association stands as the foremost advocacy and trade organization for the payments industry, representing numerous significant payments and fintech companies worldwide. ETA members facilitate the vast movement of commerce by efficiently processing around $57 trillion annually in transactions across the globe.

The current decision by the OCC not only successfully halts the potential fragmentation created by state-level regulations but also aligns with the broader goals of regulatory stability that the payments industry seeks. Stakeholders can now move forward confidently, knowing that the operations within this sector are anchored by consistent national regulations rather than varying state laws.

In the wake of evolving payment technologies and consumer demands, it’s crucial that industry players work collaboratively to reinforce the legal frameworks that guide this vital economic sector. The ETA anticipates continued engagement with legislative and regulatory bodies to ensure that the payment landscape remains robust and adaptable, meeting the needs of all stakeholders involved.

As the payments industry continues to evolve, the significance of transparency and regulatory consistency cannot be overstated. The OCC's proactive stance against the IFPA is a definitive step in ensuring that U.S. payment systems remain competitive, safe, and adept at catering to an increasingly digital economy. With various fintech innovations on the horizon, the foundation laid by such regulatory actions will be vital in shaping the future of how commerce is conducted in America.

The countdown for further developments in this ongoing narrative is keenly anticipated, with the ETA poised to advocate for measures that promote innovation while safeguarding the interests of businesses and consumers alike.