The payments industry is closely watching a recent proposal from the Office of the Comptroller of the Currency (OCC) that could have significant implications for banks, payment providers, merchants, and consumers nationwide. The OCC has proposed clarifying that national banks and federal savings associations retain the authority to assess non-interest charges and fees, including interchange fees, and that certain provisions of Illinois' Interchange Fee Prohibition Act (IFPA) are preempted by federal law.

The Innovative Payments Association (IPA) recently submitted comments supporting the OCC's proposals, highlighting concerns that state-level restrictions on interchange fees and payment data usage could create operational challenges across the payments ecosystem. The association noted that many modern financial products and services rely on a seamless, nationwide payments infrastructure supported by consistent regulatory standards.
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Beyond Illinois, similar legislative efforts are emerging in other states, raising broader questions about how the U.S. payments system can continue to operate efficiently if differing state requirements begin to govern core payment functions. A fragmented regulatory framework could increase complexity for financial institutions and payment providers while potentially impacting the products and services consumers rely on every day.

The IPA believes the OCC's action provides important clarity for the industry and helps maintain the uniform national framework that supports secure, reliable, and widely accepted electronic payments. As policymakers continue to debate the future of interchange regulation, these issues will remain critical to the stability and efficiency of the payments ecosystem.

For additional details and the IPA's full analysis, download and read the complete comment letter.

The Innovative Payments Association (IPA) is voicing support for H.R. 4801, the Unleashing AI Innovation in Financial Services Act, legislation aimed at giving financial services companies more room to responsibly test and implement artificial intelligence technologies. In a letter sent to House Financial Services Committee Chairman French Hill, the IPA emphasized that AI is already playing a valuable role across the payments ecosystem, particularly in areas like fraud prevention and operational efficiency.

According to the letter, the bill would create a framework that allows companies to work directly with federal regulators while experimenting with new AI-driven products and services. The IPA argues this approach would help strike the right balance between innovation, consumer protection, and safety and soundness standards across the financial system.

The association also noted that the legislation aligns with broader national efforts to accelerate responsible AI adoption in the United States. As policymakers and regulators continue debating the future of AI oversight, proposals like H.R. 4801 could shape how emerging technologies are integrated into banking, payments, and fintech innovation in the years ahead.

The IPA’s message underscores a growing industry view that collaboration between regulators and innovators will be essential as AI capabilities evolve. The organization encouraged lawmakers to advance the bill and continue supporting policies that foster innovation while maintaining strong consumer protections.
For more information and to read the full letter, download the IPA’s official submission to the House Financial Services Committee.