A federal judge in Illinois extended a portion of Illinois Bankers Association's request for a preliminary injunction over a controversial "swipe fees" to include out-of-state banks, finding federal law likely preempts the state law set to go into effect later this year.

In December, Chief U.S. District Judge Virginia M. Kendall for the Northern District of Illinois in part ruled that the National Bank Act likely preempted the Illinois Interchange Fee Prohibition Act, which was set to take effect July 1 to limit the amount credit and debit card companies can charge to process transactions. The plaintiffs also argued that the Riegle-Neal Interstate Banking and Branching Efficiency Act, which sets uniform standards for interstate banking, also preempts the state law as it applies to out-of-state banks.