Washington, D.C. — Following news that Office of the Comptroller of the Currency (OCC) issued an amicus brief asking the a court to invalidate “The Illinois Interchange Fee Prohibition Act,” which seeks to ban credit and debit card issuers from charging interchange fees on taxes and tips, the Lower Credit Card Fees Coalition today released the following statement.

“In cowing to the bank lobby’s demands, OCC Acting Comptroller Michael Hsu is protecting Big Banks and Wall Street over consumers and Main Street—the true heartbeat of our economy,” the Lower Credit Card Fees Coalition said in a statement. “Interchange fees are a drain on the American economy, extracting billions from small businesses and households each year. By banning fees on taxes and tips, Illinois’ new law would bring some degree of relief to retailers suffering under these unfair and high fees, which end up being passed on to consumers in the form of higher prices on nearly every purchase. It’s disconcerting to see one our country’s most powerful financial regulators make the same old, tired efficiency arguments to consolidate even more power in the hands of a few financial institutions—arguments which are both out of step with reality and this administration’s competition agenda.”

The OCC’s brief was filed last Wednesday in the U.S. District Court for Northern Illinois in a case brought against Illinois by a group of powerful industry lobbying organizations, including the American Bankers Association, Illinois Bankers Association, and America’s Credit Unions. The banking groups are seeking a preliminary injunction in federal court to block the law, which was enacted earlier this year and scheduled to take effect next July. The law is widely supported by retail organizations, small business owners, and consumers that suffer at the hands of high interchange fees.

The current administration has demonstrated a commitment to reining in unnecessary fees from card issuers, along with promoting competition across the financial services industry and the economy more generally. Just a few weeks ago, the Department of Justice Antitrust Division sued Visa for weaponizing its dominance to box out competitors and rival platforms from the debit payments market, imposing unfair price hikes on consumers and small businesses.

The LowerCreditCardFees.com coalition launched in 2023 to address extractive payment processing fees retailers and consumers pay by introducing competition into the credit card market. The group includes a diverse group of organizations representing workers, small businesses, competition advocates and consumer groups concerned by significant market failures in the credit card payments system. Members include Accountable.US, American Economic Liberties Project, Americans For Financial Reform, Fight Corporate Monopolies, International Brotherhood of Teamsters, Institute for Local Self-Reliance, Main Street Alliance, Merchant Payments Coalition, National Association of Independent Venues, National Community Reinvestment Coalition, Public Interest Research Group, and Service Employees International Union.

Learn more about the Lower Credit Card Fees Coalition here.

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.