NACS Files Comments Opposing NCUA Interim Rule
The interim final rule explains that FCUs may charge non-interest charges or fees, even when such charges and fees are set by third parties.
Jul 10, 2026 | 2 min read
The National Credit Union Administration (NCUA) Board is adopting an interim final rule to try to preempt the Illinois law on credit card interchange fees and prevent other states from passing similar laws. It would allow Visa and Mastercard to centrally fix the fees that banks charge – not only on interchange but on other fees they charge as well.
NACS submitted comments opposing the NCUA’s interim final rule. NACS stated:
“The Final Rule opens the door to serious violations of U.S. antitrust laws, undermines long-accepted principles of competitive markets, takes actions that are arbitrary and capricious and contrary to the NCUA’s powers under the Federal Credit Union Act (FCUA), and violates legal principles of federal credit union (FCU) preemption. Further, the Final Rule misconstrues how the credit and debit card markets work in the United States today and, as a result, does not and cannot preempt the Illinois Interchange Fee Prohibition Act (IFPA). The promulgation of the Final Rule also violated the Administrative Procedure Act (APA) and the Regulatory Flexibility Act (RFA) as amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA).
The ultimate validity of the Final Rule will be decided by the federal courts. But, the issuance of this Final Rule represents a dangerous departure from the NCUA’s mission as the agency has attempted to evade the standard judicial process for considering these issues and potentially created precedents for other regulators to act as advocates rather than fulfilling their responsibilities as regulators to faithfully execute and administer the law. NACS therefore strongly urges the NCUA to rescind the Final Rule.”
NACS has worked with state trade associations around the nation to advocate for states to pass laws restricting credit card interchange fees. That work will continue and NACS is actively evaluating a legal challenge to the NCUA rule and a similar rule from the Office of the Comptroller of the Currency.
