2025 Regulatory Summit

Implications

• Shift away from “bright- OLQH´ SUHHPSWLRQ ĺ OHVV XQLIRUPLW\ PRUH MXGLFLDO unpredictability. • Banks must assess state laws case by case. • Compliance choices: – Follow potentially preempted laws, – Challenge through declaratory judgment, or – Disregard and risk state/consumer enforcement. • 8QFHUWDLQW\ UDLVHV FRVWV ĺ PD\ UHGXFH FRQVXPHU FKRLFH DQG EDQN services.

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Illinois Interchange Fee Prohibition Act (IFPA)

• The IFPA prohibits payment card networks, issuers and acquirers, and processors from charging or receiving interchange on the portion of a credit or debit card transaction that is attributable to Illinois tax or gratuity. • The IFPA also prohibits entities from using transaction data (other than merchants), except for processing the transaction. • OCC filed an amicus brief supporting plaintiffs’ preliminary injunction motion. – “The IFPA as an “ill-conceived, highly unusual, and largely unworkable state law that threatens to fragment and disrupt this efficient and effective system.”

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