2025 Regulatory Summit

Interchange Flow Example

Acquirer 3.5% rate

Visa 2.6% rate

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Court Ruling on Preliminary Injunction – NBA Preemption

• Interchange Fee Prohibition – IFPA directly constrains national banks’ authority under 12 C.F.R. § 7.4002 to charge non-interest fees (including deposit account service charges). – Court: Illinois was directly regulating credit/debit card transactions by dictating issuer fee amounts. – “Nuanced Comparative Analysis” per Cantero • Court: IFPA is even more at odds with the NBA than Franklin , where state restrictions on bank advertising were preempted. • Limiting advertising was a lesser intrusion than restricting the core authority to charge non-interest fees. • Data Usage Limitation – Court also held NBA preemption applies to IFPA’s data restrictions. – Cantero : National banks have express power to provide and use data processing/transmission services for banking, financial, or economic data. – Court: IFPA’s data-use restriction is even more intrusive than the fee prohibition—it would eliminate the data-processing function altogether.

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