Swipe Fee Reform Will Barely Dent American Banks' Record Profits

By: Joe Kefauver, Senior Advisor to Americans for a Modern Economy

March 18, 2025

To put it into perspective, JPMorgan makes more than $600,000 in profit per employee, far outpacing what the average small business generates. Meanwhile, Visa and Mastercard, which dominate the payment processing market, have essentially set themselves up as toll collectors on every retail transaction in the U.S., controlling 80% of the market. Small businesses, on the other hand, don't have the luxury of negotiating these fees and are forced to either pay up, hike prices or simply close their doors.

At its core, the debate over swipe fee reform boils down to a simple choice: Protect the profits of megabanks or support small businesses and working families. And let's be clear — the CCCA doesn't dismantle the banking system or implement any kind of arbitrary swipe fee caps. It merely introduces competition and transparency to an industry that has long been dominated by a few powerful players.

Banks have weathered tighter regulations before, and they'll do it again. The question isn't whether they can adapt — it's whether lawmakers will side with financial titans who are thriving or with the small businesses struggling to survive and consumers struggling to pay their grocery costs.

At a time when Americans are increasingly frustrated by rising costs and growing frustration over corporate greed, supporting swipe fee reform is a commonsense move that both sides of the aisle can agree on. Lawmakers must take a stand for fairness, competition and the local businesses that keep our communities strong.

The banks' record-breaking profits tell us everything we need to know: They'll be just fine. It's time to stop letting their scare tactics dictate the conversation and start prioritizing the people who drive our economy. Because when a system is this broken, staying on the sidelines is not an option.

Americans for a Modern Economy is committed to ensuring that local, state and federal policies reflect changing technologies that are reshaping the way consumers, businesses and communities operate in the 21st century economy. We work with consumer advocates, businesses, think tanks, economic experts and others to raise awareness and inform discussions about the current and future policy challenges of new technology. We serve as a resource for lawmakers to help them develop modern policy solutions that benefit all Americans by expanding consumer freedom, allowing businesses to best serve their customers and preserving free market competition.