Reference: Bulletin 2026-18
Official publication: Read the full Bulletin 2026-18 on the agency website
The Office of the Comptroller of the Currency (OCC) has issued a significant regulatory clarification regarding the authority of national banks and federal savings associations to charge non-interest fees. This move, delivered via an interim final rule, arrives at a critical juncture for the banking industry as it grapples with a fragmented landscape of state-level attempts to regulate financial services fees. By amending 12 CFR 7.4002, the OCC is asserting the primacy of federal standards in the administration of the national banking system, specifically addressing long-standing questions regarding fees that are facilitated or established by third parties, such as interchange fees in payment card networks. This regulatory action reinforces the foundational principle that national banks derive their powers from federal law, intended to ensure a uniform national market for banking services.
Executive Summary
- Clarification of 12 CFR 7.4002: The interim final rule explicitly amends the existing regulation to confirm that national banks possess the power to charge and collect non-interest fees and charges.
- Inclusion of Interchange Fees: The rule specifically identifies interchange fees derived from payment card activity as falling within the scope of authorized non-interest charges.
- Third-Party Neutrality: Crucially, the OCC clarifies that bank authority to charge these fees exists regardless of whether the bank itself or a third party sets the specific fee amount.
- Preemptive Intent: This action serves as a regulatory bulwark against state-level interference in the business of banking, particularly concerning payment processing and card-related revenue streams.
- Immediate Effect: As an interim final rule, the changes take effect shortly after publication, though the regulator is seeking public comment to refine the final implementation.
What the Regulator Issued
On April 24, 2026, the Office of the Comptroller of the Currency (OCC) published Bulletin 2026-18, titled “National Bank Non-Interest Charges and Fees: Interim Final Rule.” The primary purpose of this issuance is to amend 12 CFR 7.4002, the regulation governing how national banks establish non-interest charges and fees. The interim final rule was developed to provide legal certainty in an environment where the “business of banking” has increasingly integrated with third-party platforms and networks. The official bulletin and the text of the interim rule can be accessed via the OCC’s news issuance portal at https://www.occ.gov/news-issuances/bulletins/2026/bulletin-2026-18.html.
The OCC noted in the release that the rule “clarifies national banks’ power to charge non-interest fees and charges, including interchange fees from payment card activity, regardless of whether those fees are set by the bank or a third party.” This specific phrasing is vital, as it directly addresses the mechanism through which most credit and debit card transactions are processed in the United States. Traditionally, interchange fees are set by card networks (third parties) rather than individual banks, leading to legal arguments in certain jurisdictions that such fees might fall outside the protective umbrella of federal preemption if they are not “set” by the bank itself. The OCC’s amendment aims to close this perceived gap.
Who Is Impacted
The primary entities impacted by this interim final rule are national banks and federal savings associations. These institutions now have a clearer regulatory basis for defending their fee structures against state-level legislative or enforcement actions. However, the ripples of this rule extend much further into the financial ecosystem. Payment card networks, such as Visa and Mastercard, are indirectly impacted as the rule stabilizes the regulatory environment for the interchange fees that sustain their networks. Merchant acquirers and third-party payment processors will also need to review their agreements to ensure they align with the clarified federal standards.
State regulatory bodies and legislatures are also significant stakeholders. In recent years, several states have proposed or enacted legislation aimed at exempting certain portions of transactions (such as sales tax) from interchange fee calculations. The OCC’s move to define these fees as a core part of the “business of banking” under federal authority sets the stage for potential litigation regarding the preemption of such state laws. Furthermore, legal and compliance departments within financial institutions must now re-evaluate their risk assessments regarding fee-based revenue in light of this federal reinforcement.
Key Dates and Deadlines
The OCC has established a specific timeline for the implementation of this interim final rule. While the rule provides immediate clarity, the formal administrative process requires a period for public discourse. The key dates are as follows:
- Issuance Date: April 24, 2026.
- Effective Date: The rule is an interim final rule, meaning it becomes effective shortly upon its publication in the Federal Register.
- Public Comment Deadline: Comments on all aspects of the interim final rule are due exactly 30 days after the date of publication in the Federal Register.
- Final Rule Determination: Following the 30-day comment period, the OCC will review submissions and determine whether to adopt the rule as written or make further amendments.
Practical Action Checklist
- Regulatory Inventory: Conduct a comprehensive review of all non-interest fees currently charged by the institution, categorizing those set internally versus those set by third-party networks or partners.
- Update Legal Disclosures: Ensure that customer agreements and fee schedules accurately reflect the institution’s authority to collect fees, specifically citing 12 CFR 7.4002 where appropriate.
- Interchange Fee Audit: Review payment card program agreements to confirm that interchange fee structures are documented as part of the institution’s authorized banking activities.
- State Law Gap Analysis: Identify any states where the institution operates that have recently passed or proposed restrictions on interchange fees or other non-interest charges.
- Preemption Strategy Review: Coordinate with outside counsel to develop a standardized legal defense strategy based on the interim final rule for any pending or threatened state enforcement actions.
- Vendor Oversight: Audit contracts with third-party service providers who set or facilitate fees to ensure they acknowledge the bank’s ultimate regulatory authority over those charges.
- Comment Submission: Prepare and submit formal comments to the OCC within the 30-day window, particularly if there are specific operational nuances in payment processing that require further clarification.
- Internal Training: Brief compliance and government relations teams on the implications of Bulletin 2026-18 to ensure consistent messaging in regulatory examinations and legislative advocacy.
- Risk Assessment Update: Revise the institution’s enterprise risk management (ERM) framework to reflect the reduced risk of state-level fee prohibitions being upheld against the clarified federal rule.
- Board Reporting: Provide a summary to the Board of Directors or the Risk Committee regarding the OCC’s assertion of authority and its impact on the institution’s revenue stability.
Open Questions / Watch Items
While the interim final rule provides much-needed clarity, it does not resolve every tension point in the current banking environment. One primary area to monitor is the judicial response to this rule. In a post-Chevron legal landscape, courts may scrutinize the OCC’s interpretation of the National Bank Act more rigorously. Whether the courts will defer to the OCC’s definition of “business of banking” as encompassing fees set by third parties remains an open question that will likely be tested in the federal appellate system.
Another watch item is the interaction between this OCC rule and the Consumer Financial Protection Bureau’s (CFPB) ongoing “junk fee” initiative. While the OCC is clarifying the authority to charge fees, the CFPB remains focused on whether certain fees are fair or transparent. There may be future instances where a fee is federally authorized under 12 CFR 7.4002 but still becomes the target of CFPB enforcement actions based on consumer protection theories. Institutions must navigate this dual-regulator environment carefully, ensuring that the legal power to charge a fee is matched by a transparent and defensible consumer experience.
Finally, the industry should monitor the reactions of state attorneys general. Many states have been aggressive in their attempts to regulate bank fees as a consumer protection measure. We should expect a coordinated response from state regulators, possibly including legal challenges to the OCC’s interim final rule, arguing that it exceeds the regulator’s statutory authority. The 30-day comment period will likely see significant input from state-level actors attempting to narrow the scope of the rule before it is finalized.
My Law Tampa is the publisher of this legal update. We focus on providing detailed analysis of regulatory changes affecting the financial services industry to ensure that institutions remain informed of their rights and obligations under federal law.
This memorandum is provided for informational purposes only and does not constitute legal advice. The transmission of this information is not intended to create, and receipt does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking professional counsel regarding their specific circumstances.
Source Materials
- Official publication: Bulletin 2026-18
- Regulator archive: OCC memo archive
- Memo library: browse the full regulatory memo archive
- Related memo: OCC Proposes Deregulatory Streamlining of Public Welfare, CLO Risk Retention, and FSA Nondiscrimination Rules
- Related memo: Community Bank Leverage Ratio Framework: Comprehensive Analysis of the 2026 Final Rule
- Related memo: OCC Bulletin 2026-14 and the Spring 2026 Interest Rate Risk Statistics Report
