Bank of America and JPMorgan Chase are exploring a deal to acquire a payments network from Fiserv. This acquisition would allow the banks to bypass federal caps on debit-card transaction fees established by the 2010 Durbin Amendment.
Direct ownership of the routing network exempts large financial institutions from these regulatory fee limitations. Such a shift could significantly increase revenue for the participating banks.
Discussions remain in a preliminary and tentative stage. Some participating banks have already withdrawn due to concerns over backlash from regulators, lawmakers, and merchants.