American Banker: Judge blocks Illinois from enforcing swipe fee ban
The Merchants Payments Coalition issued a statement on Tuesday expressing support for challenging the OCC's determination, which could lead to reconsideration of the ban. The OCC wasn't a party to the current case and the courts couldn't consider the preemption determination itself without a separate lawsuit. "As a result, the court had to accept the OCC rule," MPC Executive Committee member Doug Kantor said in a press release. "Soon, the courts will have the opportunity to invalidate that rule and we are confident they will do so." "The OCC has the law wrong on preemption, doesn't have the power to do what it is trying to do, and violated the Administrative Procedure Act," Kantor continued. "That rule will be overturned and the Illinois law — and any other state laws on swipe fees — will be able to go into effect."
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Merchants Say Judge’s Ruling on Illinois Swipe Fee Law is ‘Based on a Technicality’ and OCC Rule Will be Overturned
MPC said a federal judge’s ruling against Illinois’ ban on swipe fees on sales tax and tips is not the last word in the case and that the law is expected to eventually be upheld.
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Springfield State Journal-Register: Illinois delays controversial 'swipe fee' law
The Merchants Payments Coalition echoed IRMA, and estimates the wait to implement will elevate costs in Illinois by $500 million over the next year above what they would have been.
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Capitol News Illinois: Illinois’ ‘swipe fee’ law on the brink after another delay, adverse court ruling
The Merchant Payments Coalition, a group of retailers and similar businesses that advocates on credit and debit card issues, argued the new rule gives financial institutions dangerously broad fee-setting authority. “The revised language could apply broadly to numerous categories of consumer financial charges, including late fees, overdraft or over-limit fees, annual card fees, ATM fees and similar charges,” the MPC said in a statement. “By eliminating the expectation of independent competitive pricing, the rule risks encouraging industry-wide fee standardization at the expense of consumers and merchants alike.”
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Payments Dive: Judge blocks Illinois card fee law
Doug Kantor, general counsel for the National Association of Convenience Stores (and MPC Executive Committee member), contended that the court’s injunction is “based on a technicality.” “The OCC wasn’t a party to that case and there hadn’t been a lawsuit filed to challenge the validity of the OCC’s flawed rule,” Kantor wrote Monday in an email. “As a result, the court had to accept the OCC rule.” He predicted that courts will “invalidate” the OCC rule because the agency doesn’t have authority to preempt Illinois’ law and that the rule violated the Administrative Procedure Act. “That rule will be overturned and the Illinois law – and any other state laws on swipe fees – will be able to go into effect,” Kantor said.
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Progressive Grocer: Merchants Want Swipe Fee Rule Dropped, Cite Price-Fixing Impact
The Merchants Payments Coalition (MPC) urged the Office of the Comptroller of the Currency (OCC) to withdraw a pending rule intended to block state laws on credit card swipe fees, saying that the measure endorses price fixing that could drive up a wide range of fees that banks charge both merchants and consumers.
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The Center Square: Swipe fee battle continues after delay, court ruling
Merchants Payment Coalition executive committee member and National Association of Convenience Stores general counsel Doug Kantor said in a statement that he expects the IFPA to eventually be upheld. In April, Kantor told The Center Square that the Trump administration could take action to change the rule imposed by the OCC.
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Mass Market Retailers: Delay of Illinois swipe fee law will cost consumers and businesses $500 million
“Big banks’ scare tactics are costing hard working people in Illinois real money,” MPC Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor said. “$500 million may seem like pennies to credit card giants like Visa and Mastercard, but when people lose more of their money to credit card swipe fees they won’t be happy. It is mind-boggling with people concerned about affordability that credit card companies can continue to drag their feet on complying with the law – and make the people of Illinois pay the price.”
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Swipe Fee Law Delay Will Cost Illinois Consumers and Businesses $500 Million
MPC blamed bank “scare tactics” for Illinois delaying its ban on swipe fees on sales tax and tips and said the delay is estimated to elevate costs in Illinois by $500 million over the next year above what they would have been.
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Capitol Account: Banks Notch Wins in Illinois Swipe Fee Fight, as OCC Draws New Criticism
The Merchants Payments Coalition, which represents retailers, made a similar case, pointing out that the OCC’s regulation is supposed to ensure that bank fees are subject to market competition. The rule would allow a way around that, the association argued, by letting banks rely on other companies. “This is a fundamental reversal of the OCC’s longstanding recognition,” the coalition contended. “By eliminating the expectation of independent competitive pricing, the rule risks encouraging industry-wide fee standardization at the expense of consumers and merchants.”
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