Banks, Card Networks Get Ruling Blocking Illinois Swipe Fee Law

National banks, payment card networks, and federal savings associations won’t have to comply with an Illinois law barring the collection of “swipe fees” on retail taxes and tips, a federal judge ruled.

The Office of the Comptroller of the Currency’s determination in April that Illinois’ Interchange Fee Prohibition Act is preempted by the National Bank Act means national banks and federal savings associations are exempted from the law, Judge Virginia M. Kendall of the US District Court for the Northern District of Illinois said in a Monday decision.

Kendall extended her permanent injunction to shield payment card networks such ...