US banks, including JPMorgan and Bank of America, have held early talks to acquire a Fiserv-owned debit network.
The discussions, described as preliminary, centre on a potential deal that could allow the banks to route debit-card transactions through a network they own rather than an external one, a structure that would exempt them from a federal cap on the fees merchants are charged for such transactions.
According to Wall Street Journal, the fee cap in question originates from the Durbin Amendment, introduced in 2010, which restricts the interchange fees large banks can collect from merchants when debit-card transactions are processed through a third-party network. Under existing rules, banks that own the network handling their debit transactions are not subject to the same cap. This distinction has reportedly prompted interest among several large US lenders in acquiring network infrastructure rather than continuing to rely on external providers.
Furthermore, Wells Fargo and PNC Financial Services Group have also held preliminary and tentative discussions regarding a potential deal involving the Fiserv network, alongside JPMorgan and Bank of America.
Market reaction and caution among banks
News of the discussions had an immediate effect on markets, with Fiserv's shares rising 4.3% in after-hours trading following the report. Fiserv provides payment processing and financial technology infrastructure, including network services used by banks to route card transactions.
Despite the interest shown, the report noted that several of the banks that reviewed the Fiserv network have already concluded they are unlikely to proceed. Concerns cited include the possibility of backlash from lawmakers, regulators, and merchant groups, given the sensitivity around interchange fee regulation and the scrutiny that a bank-owned network structure could attract.
JPMorgan declined to comment when approached by the Reuters. Fiserv, Bank of America, Wells Fargo, and PNC Financial Services Group did not immediately respond to requests for comment made outside regular business hours.
Should any such deal materialise, it would mark a notable shift in how large US banks manage debit-card processing infrastructure, potentially reshaping the competitive landscape for network providers. However, the preliminary nature of the talks, combined with the regulatory sensitivities involved, suggests any transaction remains uncertain. The situation reflects broader tension within the US payments industry between fee regulation designed to protect merchants and the commercial incentives of banks seeking to reduce compliance costs tied to interchange caps.
