The National Credit Union Administration (NCUA) has issued an interim final rule (IFR) confirming that federal credit unions (FCUs) may charge non-interest fees, including interchange fees on credit and debit card transactions.
The rule also clarifies that this authority preempts conflicting state laws, regardless of whether the fee is established by the FCU or by a third party, such as a card network. The IFR does not create new authority; rather, it codifies NCUA’s longstanding interpretation of FCU fee authority.
The IFR was prompted by the Illinois Interchange Fee Prohibition Act (IFPA), which prohibits card issuers and acquirers from collecting interchange fees on the tax and tip portions of a transaction. In early 2026, the U.S. District Court for the Northern District of Illinois concluded that NCUA’s existing regulation, 12 CFR § 701.21(b), did not expressly preempt the IFPA with respect to FCU interchange fees because the regulation addressed only fees charged directly to members.
The Office of the Comptroller of the Currency (OCC) subsequently issued similar relief for national banks, which was enforced through a permanent injunction against Illinois. NCUA’s IFR provides comparable clarity and protection for FCUs.
The interim final rule becomes effective on June 30, 2026. Comments must be submitted to NCUA no later than July 9, 2026.
California’s Credit Unions and Nevada’s Credit Unions encourage your credit union to submit a comment letter supporting NCUA’s interim final rule.
While this IFR applies only to FCUs, state-chartered credit unions are encouraged to comment in support of the rule — because the NCUA’s actions sends a strong message to the courts that laws such as the IFPA should not disrupt the seamless operation of the card payment system.
To ensure your comments are considered, they must be received by NCUA no later than July 9, 2026.
California credit unions can review this toolkit, and Nevada credit unions can review this one — which include:
