The National Credit Union Administration (NCUA) just dropped an Interim Final Rule that essentially tells states to back off when it comes to federal credit unions (FCUs) charging fees.
Here’s the deal: The NCUA Interim Final Rule is to clarify federal credit unions’ (FCUs) power to charge non-interest charges and fees, including interchange fees, under the Federal Credit Union Act. NCUA has exclusive authority over FCUs’ ability to charge non-interest charges and fees.Why Now?
You might be wondering what sparked this regulatory clarification. The NCUA is essentially playing defense here. While the agency believes its existing preemption rules already protected FCUs from state interference, they decided to make things abundantly clear. Part of the motivation? Keeping federal credit unions on equal footing with national banks, which recently got similar protections from the Office of the Comptroller of the Currency.
Translation: The NCUA doesn’t want credit unions operating at a disadvantage compared to their banking counterparts. Fair is fair, after all.
What This Means for Your Credit Union
The rule specifically addresses a growing concern about state-level regulations that could mess with how credit unions handle payment card services. Even when fees are set by third parties (like card networks), federal credit unions can still charge them without worrying about conflicting state rules.
The Interim Final Rule goes into effect June 30, 2026, giving everyone plenty of time to adjust.
Industry Leaders Weigh In
The credit union world is pretty thrilled about this development. Scott Simpson, President and CEO of America’s Credit Unions, along with Libby Calderone, President and CEO of Illinois Credit Union League, didn’t hold back their appreciation:
“Americans rely on the electronic payments system every day for its stability and predictability. The Illinois law, driven by mega-retailers, would disrupt that system, create confusion for millions of consumers, and encroach on federal law,” they said, specifically thanking NCUA Chairman Hauptman for preventing what could have become a regulatory nightmare—a patchwork of conflicting state laws affecting the 146 million Americans who use credit unions.
The Defense Credit Union Council (DCUC) also gave the rule a major thumbs-up. Anthony Hernandez, DCUC President and CEO (and retired U.S. Air Force Colonel), emphasized how important regulatory clarity is for credit unions serving military communities.
“This rule helps ensure credit unions can continue delivering critical services to their members, including servicemembers, veterans, military families, and Department of War personnel,” Hernandez noted.
Jason Stverak, DCUC’s Chief Advocacy Officer, went even further, calling it “a meaningful win for regulatory certainty, payment-system stability, and the military communities served by defense credit unions.” He pointed out that without this clarity, credit unions might struggle to invest in essential services like fraud prevention, cybersecurity, rewards programs, and reliable digital payments.
The Bottom Line
This interim rule is all about drawing a bright line in the sand: federal credit unions answer to federal regulators when it comes to fees, period. The NCUA is now inviting public comments on the rule, so if you’ve got thoughts, now’s your chance to be heard.
For credit unions, this means one less regulatory headache and more certainty about how they can operate across state lines. And for the millions of Americans who bank with credit unions? It means the payment system they depend on stays stable, predictable, and functional—exactly how it should be.