Megabank Profits Fuel Renewed Push For Credit Card Swipe Fee Reform
By CU Today Staff —
WASHINGTON—With three of the nation's largest credit card issuing banks reporting billions of dollars in third-quarter profits, including a 40% earnings increase at Citigroup, the Merchants Payments Coalition (MPC) is renewing its call for Congress to pass legislation aimed at reducing credit card swipe fees.
The coalition pointed to the earnings reports as evidence that financial institutions and card networks continue to profit handsomely while merchants and consumers face rising payment processing costs.
“Another quarter, another round of multibillion-dollar profits for the megabanks, paid for in part by the swipe fees merchants and their customers are charged at every checkout,” MPC Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor said. “Americans should have more money to spend, but they are getting squeezed by Visa and Mastercard operating the credit card industry as two big cartels. Their profits show the ripoffs of Americans just keep on coming.”
According to the earnings figures cited by MPC, Citigroup reported third-quarter net income of $5.2 billion, up 40% from a year earlier, on revenue of $23.8 billion. JPMorgan Chase reported profits of $15.3 billion, up 6%, on revenue of $50.2 billion, while Wells Fargo posted $6 billion in earnings, also up 6%, on revenue of $21.9 billion. MPC calculated profit margins of 22% for Citigroup, 31% for JPMorgan Chase and 27% for Wells Fargo, contrasting those figures with what it said was an average merchant profit margin of approximately 3%.
The coalition said combined credit and debit card swipe fees have increased 80% since the pandemic, reaching a record $198.25 billion in 2025. It also contended that the fees cost the average American family more than $1,200 annually through higher retail prices. MPC is backing the Credit Card Competition Act, which would require banks with at least $100 billion in assets to enable credit card transactions to be processed over at least two unaffiliated networks, rather than relying exclusively on Visa or Mastercard. The coalition estimates the legislation could save merchants and consumers $17 billion annually, although those projected savings remain disputed by opponents of the measure.
CUToday.info has previously reported on strong opposition to the Credit Card Competition Act from credit union trade groups, including America’s Credit Unions and the Defense Credit Union Council. America’s Credit Unions president/CEO Scott Simpson has warned the legislation would disrupt the credit card payments system, harm consumers and smaller financial institutions, and benefit large retailers. DCUC has similarly argued that the measure threatens interchange revenue credit unions rely on to support affordable financial services, fraud prevention and member benefits, including services for military families. Both organizations maintain that smaller credit unions could be harmed despite the bill's $100-billion asset threshold, making the legislation a continuing point of contention between the financial services industry and merchant groups.
Originally reported by CU Today.