FOR IMMEDIATE RELEASE
Contact: J. Craig Shearman
(202) 257-3678 craig@shearmancommunications.com
WASHINGTON, July 30, 2026 — The nation’s two largest credit card networks reported mammoth profits this week even as many small businesses and consumers continue to struggle with affordability, the Merchants Payments Coalition said today.
“Whether it’s the megabanks that issue the cards or the card networks that price-fix swipe fee rates, the card industry continues to make billions while small businesses and American families bear the burden,” MPC Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor said. “Prices for necessities from gas to groceries are driven higher by swipe fees, even for people who pay with cash. It’s time for Congress to bring competition to these price-fixed fees.”
No. 1 card network Visa reported Tuesday that net profits for the latest quarter rose 7% year over year, totaling $5.6 billion on revenue of $11.6 billion for a profit margin of 48%. No. 2 Mastercard reported today that net profits were up 19% year over year, totaling $4.4 billion on revenue of $9.3 billion for a profit margin of 47%. In contrast, retail profit margins are a little more than one-tenth the level of Visa’s.
Earlier this month, top Visa/Mastercard issuer JPMorgan Chase reported that second-quarter net profits were up 41% year over year and totaled $21.2 billion on revenue of $57.3 billion. No. 2 card issuer Citigroup said net profits were up 45% at $5.8 billion on $24.8 billion in revenue while Wells Fargo, another large card issuer, reported net profits were up 17% at $6.4 billion on $22.6 billion in revenue. Bank of America’s net profits were up 6% at $9.1 billion on $31.6 billion in revenue.
Based on those figures, JPMorgan Chase had a profit margin of 37%, Citigroup 24%, Wells Fargo 28% and Bank of America 29%.
Credit card and debit card swipe fees have jumped 80% since the pandemic and hit a record $198.25 billion in 2025. Swipe fees are most merchants’ highest operating cost after labor and too much to absorb, driving up prices by more than $1,200 a year for the average family. The fees are rising largely because of lack of competition — Visa and Mastercard, which control 80% of the market, each centrally set the swipe fee rates charged by all banks that issue cards under their brands and restrict processing to their own networks.
As a percentage of the transaction, swipe fees automatically go up as prices rise. Card industry rules make cash discounts difficult, so all consumers pay higher prices because of swipe fees.
The earnings reports come as Congress is considering the bipartisan Credit Card Competition Act, which President Donald Trump endorsed earlier this year to “stop the out of control Swipe Fee ripoff.”
Under the bill, banks with at least $100 billion in assets would enable credit cards to be processed over at least one unaffiliated network like Star, NYCE or Shazam in addition to Visa or Mastercard. The measure is expected to result in competition over fees, security and service that would save merchants and their customers $17 billion a year.
The card industry has waged a misleading fight to maintain the status quo, with the consumer group Demand Progress reporting last week that Visa, Mastercard, big banks and their trade associations have spent approximately $200 million since 2023 to oppose swipe fee reform measures, including forming a fake small business coalition with multiple members of it paid by the credit card companies.
About MPC
The Merchants Payments Coalition represents retailers, supermarkets, convenience stores, gasoline stations, online merchants and others fighting for a more competitive and transparent card system that is fair to consumers and merchants. Follow MPC on Twitter, Facebook or LinkedIn for the latest on swipe fees.
