WASHINGTON — The National Federation of Independent Business is urging the Treasury Department to overturn an interim final rule issued by the Office of the Comptroller of the Currency that the group said would allow payment card processors to set swipe fees while limiting states’ ability to regulate interchange costs.
In a letter to Treasury, the NFIB said the OCC rule departs from prior standards and would benefit large banks and payment card companies at the expense of small businesses and consumers.
“Swipe fees have become one of the highest overhead costs for small business owners nationwide,” Beth Milito, vice president and executive director of NFIB’s Small Business Legal Center, said in a statement released by the organization.
“At every turn, this interim rule contradicts the previous standard in favor of big banks and credit card companies,” Milito said. “Now, banks and card processors can collude to set even higher swipe fees, padding their bottom lines at the expense of small businesses and consumers.”
Response to Illinois Law
As the CU Daily reported earlier, OCC rule was issued as part of the agency’s response to the Illinois Interchange Fee Prohibition Act, which is scheduled to take effect July 1, 2026. The agency has said federal law preempts the Illinois statute for national banks and federal savings associations, arguing the state law would create what it called a “complex, potentially unworkable, and destabilizing” regulatory framework for federally regulated financial institutions and payment networks.
As the CU Daily reports here, NCUA has issued a similar ruling.
Credit union organizations have strongly supported the OCC’s decision, arguing the Illinois law threatens the uniform operation of the payments system and could increase costs and operational complexity for financial institutions and merchants alike. Trade groups representing credit unions, banks and payment card networks have welcomed the OCC’s preemption determination in recent statements and court filings.
The NFIB said 92% of its members believe small business owners should be able to choose between multiple credit card processing networks.
