OCC Clarifies National Banks’ Power to Charge Non-Interest Fees
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This rule says national banks can charge non-interest fees more broadly, including interchange fees from debit and credit card transactions. It also makes clear that banks may collect those fees even when the amount is set by, or negotiated with, third parties like card networks. The main practical effect is to strengthen banks’ ability to keep current card-fee arrangements in place, especially as they face state limits such as Illinois’ interchange fee law.
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Key Changes
- Defines “charge” broadly to include collecting fees directly or through third parties, intermediaries, payment networks, or fee-sharing arrangements.
- Adds interchange fees as a clear example of non-interest fees national banks may impose.
- States that setting fees with or through third parties is a bank business decision under federal banking rules.
Obligations
What this law requires
National banks may assess, collect, impose, levy, receive, reserve, take, or otherwise obtain non-interest charges and fees, including interchange fees from credit and debit card transactions, as part of their payment card operations.
National banks may charge non-interest charges or fees even when the fee amount is set by, or negotiated in consultation with, third parties such as card networks or other intermediaries.
National banks may take non-interest charges and fees directly or through intermediaries, partners, payment networks, interchanges, or other third parties, including through fee-sharing or similar economic relationships.
When making business decisions about non-interest charges and fees, national banks must use sound banking judgment and safe and sound banking principles, including decisions about whether to enter third-party business relationships or charge fees set by third parties.
National banks must not engage in illegal anticompetitive conduct when making business decisions regarding non-interest charges and fees.