FOR IMMEDIATE RELEASE
Contact: J. Craig Shearman
(202) 257-3678 craig@shearmancommunications.com
WASHINGTON, April 24, 2026 — The Merchants Payments Coalition today called on the administration to retract rules issued by the Office of the Comptroller of the Currency that would block state laws on credit card swipe fees, saying the rules contradict President Donald Trump’s call for lower swipe fees and endorse the price-fixing of all fees charged by banks.
“This rogue move by the OCC flies in the face of President Trump saying we need to stop the swipe fee ripoff,” MPC Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor said. “The President himself has recognized the harm these fees do to affordability, and an agency working under his control should not be taking the opposite position. Worse yet, the OCC rules endorse price fixing of fees banks charge, including not just swipe fees but a wide range of consumer fees. That’s outrageous and would only make matters worse. Illinois has taken an important step toward bringing swipe fees under control while waiting for Congress to take broader action. The OCC and the administration should be standing up for small business and consumers rather than taking the side of Wall Street banks.”
The OCC today announced two interim final rules. One would block the Illinois Interchange Fee Prohibition Act, which bans card networks and banks from collecting swipe fees on the sales tax portion of transactions or on workers’ tips. The second would ban similar laws under consideration in other states. Both would take effect June 30, the day before the Illinois ban is set to take effect.
The OCC said the rules “make explicit” that a nationally chartered bank’s decision to “charge fees set by or in consultation with third parties” are “business decisions to be made by each bank.” Kantor said that amounts to an endorsement of Visa and Mastercard’s current practice of centrally setting swipe fee rates charged by all banks that issue cards under their brands, and also endorses central price fixing of a wide range of bank fees.
The Illinois law was upheld in February by a federal judge who rejected banks’ claim that it was preempted by federal banking law. U.S. District Judge Virginia Kendall said the law is not preempted because swipe fees are set by Visa and Mastercard, which are not banks and therefore not subject to the National Bank Act. Banks have appealed the ruling to the 7th U.S. Circuit Court of Appeals, and the OCC recently filed a brief in support of the banks’ position.
Today’s announcement by the OCC comes three months after Trump endorsed the Credit Card Competition Act, saying it is needed “to stop the out of control Swipe Fee ripoff.”
Credit and debit card swipe fees have increased 80% since the pandemic, reaching a record $198.25 billion last year. They are most merchants’ highest operating cost after labor and are too much to absorb, driving up prices by more than $1,200 a year for the average family.
Visa and Mastercard — which control 80% of the market — each centrally set the swipe fees charged by banks that issue cards under their brands, and also block transactions from being processed over other networks that could do the job with lower fees and better security. Under the CCCA, banks with at least $100 billion in assets would enable cards they issue to be processed over at least two unaffiliated networks — Visa or Mastercard plus a competitor like NYCE, Star or Shazam. The measure is expected to result in competition over fees, security and service that would save merchants and consumers $17 billion a year.
About MPC
The Merchants Payments Coalition represents retailers, supermarkets, convenience stores, gasoline stations, online merchants and others fighting for a more competitive and transparent card system that is fair to consumers and merchants. Follow MPC on Twitter, Facebook or LinkedIn for the latest on swipe fees.
