WASHINGTON, DC (July 8, 2026) |
The Defense Credit Union Council (DCUC) wrote to the National Credit Union Administration expressing strong support of the agency’s interim final rule clarifying federal credit union authority to assess and receive non-interest charges and fees associated with payment card operations, including interchange fees.
In its comments, DCUC commended the NCUA Board for acting in response to concerns raised by the credit union industry and for affirming that federal law preempts state laws that interfere with federally authorized payment card activities, including provisions contained in the Illinois Interchange Fee Prohibition Act (IIFPA).
According to DCUC, the rule does not create new authority for federal credit unions but rather clarifies long-standing statutory powers under the Federal Credit Union Act (FCUA).
“Varying state restrictions on interchange fees and payment processing could undermine the uniform national payments framework relied upon by consumers, businesses, and military communities. The interim final rule provides important legal certainty for federal credit unions and appropriately preserves the integrity, efficiency, and reliability of the nation's payments system,” says Jason Stverak, DCUC Chief Advocacy Officer.
"DCUC appreciates the NCUA's continued efforts to modernize its regulatory framework and ensure credit unions can effectively serve their members in an increasingly complex financial environment," says Anthony Hernandez, DCUC President/CEO, (Ret.) U.S. Air Force Colonel. "We strongly support reforms that reduce unnecessary burden, provide greater regulatory clarity, and preserve the federally granted authorities credit unions rely upon to deliver affordable financial services."
The letter concluded:
“DCUC supports the NCUA’s decision to issue this clarification through an interim final rule with immediate effect. Given the uncertainty created by the IIFPA regarding the exercise of federally
authorized powers, the NCUA had clear justification and should act promptly…DCUC respectfully urges the Board to adopt the interim final rule as final without modification.”