The Office of the Comptroller of the Currency issued an interim final order on Apr. 29 that seeks to invalidate an Illinois law designed to lower swipe fees for restaurant operators, while also proposing changes to the National Bank Act that would prevent states from enacting similar protections. The National Restaurant Association has voiced strong opposition and called on the Trump Administration to withdraw these rules.
This issue is significant because it affects how much restaurants pay in credit card interchange fees, which are among their highest operating costs. These fees have a direct impact on profitability for many businesses, especially as more than 42% of restaurant operators were not profitable in 2025.
Sean Kennedy, Chief Advocacy Officer of the National Restaurant Association, said, “These two rules effectively rewrite federal law just two months after a federal judge upheld the Illinois statute, finding that swipe fees set by payment card networks fall outside the banking activities governed by the National Banking Act. By stepping in before the appeal can even be heard, regulators have short-circuited the legal process and wiped-out changes that would have saved Illinois businesses more than $507 million they’re currently paying to act as the state’s tax collector.”
The OCC clarified in its rules that national banks may use third parties for products or services and allow those third parties to influence pricing decisions. Critics say this approach allows large banks and credit card companies to collectively set nonnegotiable swipe fees without competition or oversight from states. This system results in uniform nationwide charges for merchants and consumers.
There are currently no federal laws regulating credit card transaction costs in the United States. Two companies control over 80% of this market, setting average interchange fees between 2–4%, costing business owners more than $198 billion each year according to industry reports cited by stakeholders. In addition, businesses paid $11 billion in swipe fees while acting as tax collectors for their states during 2024.
Advocates argue that reform legislation like state bills or proposals such as the Credit Card Competition Act could introduce needed competition into payment processing without undermining existing benefits like fraud protection or rewards programs. The National Restaurant Association supports these efforts through advocacy at all levels of government according to its official website. The association also works with partners across all U.S. states according to its official website.
Kennedy concluded by saying Congress should pass legislation opening up credit card processing markets: “Swipe fees are generally among their highest costs – often only behind food and labor – and U.S. swipe fees have more than doubled over the past decade.”
The broader implications include rising operating expenses for restaurants nationwide—a sector represented by one of America’s largest private employers according to its official website. The association continues efforts aimed at enhancing community development through economic contributions from local restaurants according to its official website.
