Federally-chartered credit unions are immune from an Illinois law barring the collection of “swipe fees” on retail taxes and tips, and other state restrictions on their non-interest charges and fees, the regulator that oversees those institutions said.
Federal credit unions enjoy the same preemption powers that national banks do, allowing them to continue to charge interchange fees on all aspects of a credit or debit card transaction despite the existence of Illinois’ law, the National Credit Union Administration said in an interim final rule published Tuesday in the Federal Register.
The NCUA’s rule comes as the prospect for enforcement of ...