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The economics of proprietary debit networks appears to be asserting itself as a consortium of big banks is reportedly looking to acquire a debit card system from Fiserv Inc.
The banking group, which includes JPMorgan Chase, Bank of America, Wells Fargo, and PNC Financial Services Group, has had “tentative discussions” with the Milwaukee-based processing giant about a debit-network deal, according to a report early Tuesday by The Wall Street Journal. Fiserv owns two debit networks, Star and Accel, though it isn’t clear which network or both might be the object of the discussion. A Fiserv spokesman refused to comment on the matter.
The move to acquire a debit network holds appeal for banks, as ownership of the system would exempt them from the interchange cap imposed years ago by the Durbin Amendment. The amendment’s Regulation II imposes on banks with $10 billion or more in assets a fee cap of 21 cents plus 0.05% of the transaction value. Most recently, Capital One benefited from this exemption in 2025 with its $35.3 billion deal for the Discover Network, which brought with it the Pulse debit system. Cap One’s assets total more than $680 billion.
For this reason alone, some experts applaud the potential for a deal involving either Star or Accel. “I’m a huge fan of banks buying their own debit networks to escape Durbin,” notes Eric Grover, proprietor of the payments consultancy Intrepid Ventures. Other observers, though, expess skepticism that the talks with Fiserv will yield a positive result for the banks. “[A] deal seems unlikely given regulatory and likely large merchant pushback. We also note that by aiding large banks, Fiserv could alienate its community bank and credit union customer base, beneficiaries of Durbin debit regulations,” says a research note issued early Tuesday by William Blair.
Questions have also emerged regarding whether Fiserv will part with both debit networks or just one. “Knowing how profitable the debit networks have been for Fiserv, I don’t believe for a minute they would sell both,” says Cliff Gray, proprietor of Gray Consulting Ventures, a Chicago-based firm.
Such questions may not matter much in the long run if regulators turn thumbs down on any deal that may emerge from the talks. This verdict could be all the more likely given that a banking consortium is involved as the buyer, some observers say. “I don’t think the Fed will bless it,” says Grover, referring to the Federal Reserve. And even if the deal goes through, he says the group buy could also prove to be a liability. “I don’t think the Fed would give a consortium an exemption from Durbin” on the law’s fee cap, he adds.
