The Clearing House joined the Bank Policy Institute, the Consumer Bankers Association, and the Financial Services Forum (collectively, “the Associations”) in a letter supporting two actions by the Office of the Comptroller of the Currency (“OCC”) to preempt state laws limiting banks’ ability to charge or receive interchange fees on payment card transactions. First, the OCC issued an interim order finding that the Nation Bank Act (“NBA”) preempts the Illinois Interchange Fee Prohibition Act (“IFPA”). Second, the OCC issued an interim final rule amending its regulations to clarify that the NBA grants national banks the power to charge non-interest fees, including interchange fees, even when facilitated by a third party such as a card network operator. The Associations express support for these actions that codify national banks’ powers to charge, receive, or otherwise obtain interchange fees, whether directly or through third parties, and confirm that the IFPA is preempted because it interferes with these powers. As the letter explains, preemption of the IFPA provides certainty for national banks engaged in payments and other banking activities, reduces unnecessary litigation, and preserves national banks’ ability to engage in their federally authorized powers, including participating in payment card systems. To read the full comment letter click here.