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ARTICLE · 19 FEBRUARY 2026

Federal Court Issues Mixed Decision On Illinois Interchange Fee Law

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On February 10, Chief Judge Virginia M. Kendall of the United States District Court for the Northern District of Illinois issued a Memorandum Opinion and Order resolving cross-motions for summary judgment concerning the Illinois Interchange Fee Prohibition Act.

United StatesFinance and Banking
Thomas V. Panoff
Thomas V. Panoff
Mehul Madia
Mehul Madia
Maxwell Earp-Thomas
Maxwell Earp-Thomas
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On February 10, Chief Judge Virginia M. Kendall of the United States District Court for the Northern District of Illinois issued a Memorandum Opinion and Order resolving cross-motions for summary judgment concerning the Illinois Interchange Fee Prohibition Act. The court granted a permanent injunction blocking enforcement of the Act's data usage limitation, while allowing the interchange fee restriction to take effect July 1, 2026.

In its merits analysis, the court concluded that the data usage limitation directly conflicts with federally authorized banking powers and is therefore preempted under the National Bank Act and related federal statutes. By contrast, the court determined that the interchange fee restriction does not "significantly interfere" with national banking powers under the Supreme Court's Barnett Bank standard because payment card networks, rather than banks themselves, establish interchange fee schedules. The court described the matter as a close

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