Fiserv shares rise 6% as banks discuss buying debit network

Shares of Fiserv rose about 6% in premarket trading after reports that JPMorgan Chase, Bank of America, Wells Fargo and PNC held preliminary talks to buy the payments networks that process the company’s debit-card transactions. The discussions occurred in recent months and remain tentative; there is no certainty a transaction will take place.

Fiserv owns the STAR and Accel debit networks. These networks route debit, ATM and e-commerce transactions between consumers, merchants and financial institutions. According to the company, the STAR Network serves more than 115 million debit-card holders through over 2,800 financial institutions.

Banks have considered owning payments infrastructure to control how debit transactions are routed and to expand revenue sources as competition from fintech firms and digital-asset companies grows. Under the Durbin amendment to the 2010 Dodd-Frank Act, large banks face limits on interchange fees when transactions run over third-party networks. Institutions that own a payments network are exempt from those fee caps.

Several banks that reviewed the opportunity decided they were unlikely to proceed, citing concerns that a purchase could draw opposition from lawmakers, regulators and merchant groups. Some institutions also expressed concern about political or regulatory backlash and pushback from merchant organizations that support lower interchange fees.

The reported talks come as banks look for ways to strengthen their roles in digital payments amid expanding services from fintech competitors and ongoing policy discussions about financial innovation and digital assets. Owning transaction-processing infrastructure would allow a bank to influence routing decisions and capture a larger share of fees tied to card use.

Fiserv has faced a difficult period in the markets. Its shares had fallen roughly 70% from a year earlier before Tuesday’s premarket rally. Any potential transaction would involve commercial and regulatory considerations, and it remains unclear whether the discussions will progress beyond early exploration.