The NCUA has issued an Interim Final Rule clarifying that federal credit unions have the authority to charge non-interest charges and fees, including interchange fees, under the Federal Credit Union Act.

The rule takes effect June 30 and makes clear that the NCUA has exclusive authority over federal credit unions’ ability to assess non-interest charges and fees. It is also intended to preempt state laws that would affect fees related to payment card services, including interchange fees.

According to the NCUA, existing preemption rules already permit federal credit unions to impose certain fees, including fees set by third parties, without state interference. However, the agency adopted the Interim Final Rule to provide additional clarity and to avoid any regulatory disparity between federal credit unions and national banks. The Office of the Comptroller of the Currency recently issued a similar interim final rule addressing the same subject for national banks.

The NCUA’s action comes amid growing state-level efforts to regulate interchange fees. In Illinois, the Interchange Fee Prohibition Act (IFPA) would prohibit the collection of interchange fees for the tax and gratuity portions of card transactions in Illinois. The legislature passed on one-year extension for implementation that is expected to be signed by the governor. The courts will determine how much deference to give to the NCUA and OCC rules and whether national banks and federal credit unions are preempted from complying with the IFPA.

The Association has been actively working to oppose similar legislation in Delaware. The Association has emphasized that state-level interchange restrictions would have harmful consequences for credit unions, consumers, and the broader payments ecosystem. The proposed legislation could also reduce resources credit unions rely on to provide secure, affordable card services.