Major Banks Eye Fiserv Network to Sidestep Debit Fee Caps

JPMorgan, Bank of America, and other U.S. banks are exploring the purchase of a network owned by Fiserv. The goal is to bypass federal debit card fee restrictions as established by the 2010 Durbin Amendment. However, concerns over potential backlash from lawmakers and regulators have hindered progress.

In a strategic move, major U.S. banks such as JPMorgan and Bank of America have engaged in preliminary discussions aiming to purchase a network owned by payments firm Fiserv. This acquisition could enable these banks to circumvent government-imposed debit card fee caps, according to a Wall Street Journal report.

The fee limitations date back to the 2010 Durbin Amendment, which restricts the amount large banks can charge merchants on debit card transactions routed through an external network. Ownership of the Fiserv network would remove such constraints, insiders revealed.

While Fiserv's stock saw a surge over the news, skepticism reigns among some institutions regarding regulatory backlash, with several banks hesitating to proceed. Neither JPMorgan nor Fiserv commented on the ongoing negotiations when approached by Reuters.