The Merchants Payments Coalition reopened its push for the Credit Card Competition Act on Tuesday, citing Citigroup’s 40% jump in third-quarter profit and JPMorgan Chase’s 10% rise in debit and credit card sales volume as proof that swipe fees still outrun what stores can absorb.
What the banks reported
Citigroup said net income reached $5.2 billion on $23.8 billion of revenue for the quarter ended Sept. 30. U.S. consumer cards revenue held flat at $4.7 billion even as net interest income in the unit rose 6% to $5.4 billion; higher rewards and partner payments dragged non-interest revenue down 62%. General-purpose card spending rose 13% while private-label activity fell, and card net income slipped 8% to $851 million.
JPMorgan Chase, the largest U.S. Visa and Mastercard issuer, posted $15.3 billion of net income on $50.2 billion of revenue. Its Card Services and Auto unit revenue climbed 15% to $8.3 billion, with card sales volume up 10%. Wells Fargo reported $6 billion of profit on $21.9 billion of revenue, helped in part by higher card fees.
What merchants want Congress to do
The coalition argues those results show why the Credit Card Competition Act should move. The bill would require banks with at least $100 billion of assets to enable at least one competing network—such as Star, NYCE, or Shazam—on top of Visa or Mastercard routing. Merchant groups estimate routing competition could save stores and shoppers about $17 billion a year.
President Donald Trump endorsed the concept in January, calling swipe fees an “out of control” ripoff, and has repeated that message since. Banks and credit unions counter that forced network choice could weaken card security features and fund rewards programs cardholders rely on.
Separate court fight over surcharges
Merchants are also watching a proposed Visa and Mastercard settlement that received preliminary court approval. A fairness hearing is scheduled for Nov. 16, 2026. If finalized, the agreement could let stores surcharge credit purchases by card type, decline some premium cards, and steer customers toward cheaper payment methods—tools the networks historically restricted.
The settlement site says published U.S. credit interchange rates would not rise above their March 31, 2025 levels. That cap matters to grocers and gas stations that saw interchange rise faster than overall inflation during the post-pandemic spending boom.
What cardholders should watch
None of these fights change your statement due date this week. They do shape whether small businesses add checkout surcharges, trim rewards-heavy card acceptance, or pass higher processing costs into shelf prices. The coalition pegs that household burden at more than $1,200 a year in higher prices tied to swipe fees.
If you carry a Citigroup-issued card, the earnings release also shows where your interest and fee dollars went: rewards competition is expensive, and issuers are still booking strong spend growth even as some units report tighter margins. Congress returns with a live merchant lobbying campaign tied directly to those quarterly numbers.
Investor read-through
Wall Street treated the megabank prints as mixed. JPMorgan missed analyst estimates for the first time since late 2023 as trading and dealmaking slowed, Reuters reported, even as consumer card metrics improved. Citigroup’s headline profit growth impressed on a year-over-year basis but did little to quiet the policy debate on Capitol Hill.
For household borrowers, the more immediate lever remains your own APR and annual fee—not interchange law. Still, the coalition’s message is aimed at shoppers who wonder why sticker prices stay high while bank earnings headlines keep setting records.