(a) Definition. For the purposes of this section:
Charge means to directly or indirectly, through intermediaries, partners, payment networks, interchanges, or other third parties, assess, collect, impose, levy, receive, reserve, take, or otherwise obtain, including through a fee sharing or similar economic relationship.
(b) Authority to impose charges and fees. A national bank may charge non-interest charges and fees, including deposit account service charges and interchange fees from credit and debit card operations.
(c) Considerations. (1) Business decisions regarding non-interest charges and fees permitted under this section should be arrived at by each national bank on a competitive basis and not on the basis of any agreement, arrangement, undertaking, understanding, or discussion with other banks or their officers.
(2) Decisions regarding charging non-interest charges and fees, including their amounts, the method of calculating them, whether to enter into business relationships or lines of business, and whether they are set by or in consultation with third parties, are business decisions to be made by each national bank, in its discretion, according to sound banking judgment and safe and sound banking principles. A national bank establishes non-interest charges and fees in accordance with safe and sound banking principles if it employs a decision-making process through which it considers the following factors, among others:
(i) The cost incurred by the national bank in providing the service;
(ii) The deterrence of misuse by customers of banking services;
(iii) The enhancement of the competitive position of the national bank in accordance with its business plan and marketing strategy;
(iv) The use of third parties to provide or facilitate the provision of a product or service; and
(v) The maintenance of the safety and soundness of the national bank.
(d) Interest. Charges and fees that are “interest” within the meaning of 12 U.S.C. 85 are governed by § 7.4001 and not by this section.
(e) State law. The OCC applies preemption principles derived from the United States Constitution, as interpreted through judicial precedent, when determining whether State laws apply that purport to limit or prohibit charges and fees described in this section.
(f) National bank as fiduciary. This section does not apply to charges imposed by a national bank in its capacity as a fiduciary, which are governed by 12 CFR part 9.
[66 FR 34791, July 2, 2001, as amended at 91 FR 22995, Apr. 29, 2026]
Notes of Decisions
Gutierrez v. Wells Fargo Bank, N.A., 730 F. Supp. 2d 1080 (N.D. Cal. 2010).
· cites it 21× “Turning to the bank’s preemption defense and its supposed considerations under 12 C.F.R. 7.4002, the regulation then stated (and continues to state) the following: A national bank establishes non-interest charges and fees in accordance with safe and sound banking principles if…”
Monroe Retail, Inc. v. RBS Citizens, N.A., 589 F.3d 274 (6th Cir. 2009).
· cites it 12× “They disagree, however, as to whether the NBA's grant of authority to charge fees includes *281 the service fees for the garnishment process and preempts the Garnishors' conversion claim.”
In re TD Bank, N.A., 150 F. Supp. 3d 593 (D.S.C. 2015).
· cites it 15× “” 12 C.F.R. § 7.4002 (a). OCC regulations further provide, “The establishment of non-interest charges and fees, their amounts, and the method of calculating them are business decisions to be made by each bank, in its discretion, according to sound banking judgment and safe and…”
Veronica Gutierrez v. Wells Fargo Bank, N.A., 704 F.3d 712 (9th Cir. 2012).
· cites it 8× “12 C.F.R. § 7.4002 (b). As the agency charged with administering the National Bank Act, the OCC has primary responsibility for the surveillance of the “business of banking” authorized by the National Bank Act.”
Johnson v. BOKF Nat'l Assn, 15 F.4th 356 (5th Cir. 2021).
· cites it 8× “Banks have discretion to impose deposit account services fees and other non-interest charges on their account holders, such as the bank’s checking account customers, so long as the bank acts within the bounds of “sound banking judgment and safe and sound banking principles.”
White v. Wachovia Bank, N.A., 563 F. Supp. 2d 1358 (N.D. Ga. 2008).
· cites it 12× “Wachovia primarily relies on 12 C.F.R. § 7.4002 , 12 C.F.R. § 7.4007 , and an Office of Comptroller of Currency (“OCC”) Interpretive Letter dated May 22, 2001 (the “OCC Letter”).”
Fawcett v. Citizens Bank, N.A., 919 F.3d 133 (1st Cir. 2019).
· cites it 8× “12 C.F.R. § 7.4002 . Deposit account service charges are not subject to usury limits.”
Leghorn v. Wells Fargo Bank, N.A., 950 F. Supp. 2d 1093 (N.D. Cal. 2013).
· cites it 8× “2d 237 (1996); 12 C.F.R. §§ 7.4002 , 34.4). Wells Fargo that HOLA should apply because the loan originated with Wachovia, a federal savings bank, but, alternatively, the NBA applies because Wells Fargo is a national bank regulated by the NBA.”
Ellsworth v. U.S. Bank, N.A., 908 F. Supp. 2d 1063 (N.D. Cal. 2012).
· cites it 7× “In addition, “[s]tate laws purporting to regulate national bank fees and charges that do not constitute interest are addressed in 12 C.F.R. 7.4002.” 12 C.F.R. § 34.4 (a)(12) n.”
In re HSBC Bank, USA, N.A., Debit Card Overdraft Fee Litig., 1 F. Supp. 3d 34 (E.D.N.Y 2014).
· cites it 5× “4007 ; and (3) improperly impose conflicting state standards on the establishment of charges and fees and the method of calculating them as provided by 12 C.F.R. § 7.4002 . The Plaintiffs counter that the NBA does not preempt state law claims based on contracts, torts, or…”
Martinez v. Wells Fargo Home Mortg., Inc., 598 F.3d 549 (9th Cir. 2010).
· cites it 3× “The first is 12 C.F.R. § 7.4002 (b)(2), which relates to setting fees and which states, in part: The establishment of non-interest charges and fees, their amounts, and the method of calculating them are business decisions to be made by each bank, in its discretion, according to…”
— 12 C.F.R. § 7.4002(a) — 7 cases
Veronica Gutierrez v. Wells Fargo Bank, N.A., 704 F.3d 712 (9th Cir. 2012).
“12 C.F.R. § 7.4002 (b). As the agency charged with administering the National Bank Act, the OCC has primary responsibility for the surveillance of the “business of banking” authorized by the National Bank Act.”
Johnson v. BOKF Nat'l Assn, 15 F.4th 356 (5th Cir. 2021).
“Banks have discretion to impose deposit account services fees and other non-interest charges on their account holders, such as the bank’s checking account customers, so long as the bank acts within the bounds of “sound banking judgment and safe and sound banking principles.”
— 12 C.F.R. § 7.4002(b)(2) — 1 case
Gutierrez v. Wells Fargo Bank, N.A., 730 F. Supp. 2d 1080 (N.D. Cal. 2010).
“Turning to the bank’s preemption defense and its supposed considerations under 12 C.F.R. 7.4002, the regulation then stated (and continues to state) the following: A national bank establishes non-interest charges and fees in accordance with safe and sound banking principles if…”
— 12 C.F.R. § 7.4002(d) — 1 case
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