Bankers, Credit Unions, Welcome Latest Swipe Fee Rule

The National Credit Union Administration has clarified that federal credit unions are exempt from state laws regulating payment card transactions. This move specifically addresses Illinois’ Interchange Fee Prohibition Act, which would ban swipe fees on the tax and tip portions of credit and debit card purchases. In response to the NCUA’s Monday announcement, major banking and credit union groups expressed support, citing ongoing legal challenges to the Illinois law. The state legislature has also postponed the law’s start date to July 1, 2027. The decision sets up continued debate over the authority of state versus federal regulation on interchange fees.