New York, Jan 12, 2026, 11:32 EST — Regular session
- Visa shares fall as investors weigh a proposed 10% cap on credit-card interest rates
- Analysts flag low odds without Congress, but headline risk hits lenders and card networks
- Focus turns to bank earnings this week and any further details before Jan. 20
Visa Inc shares fell 1.4% to $344.84 in late-morning trading, tracking a selloff in consumer finance names. Mastercard slid 1.7% and American Express fell 4.6%.
The pressure followed President Donald Trump’s call for a one-year cap on credit-card interest rates at 10%, starting Jan. 20, without spelling out how it would be enforced. Analysts said the proposal would likely require legislation, leaving markets to trade the risk before the details exist. 1
Financial stocks broadly slipped on the headline, and the move has pulled in payment processors alongside banks and specialty lenders. Seaport Research analyst Bill Ryan wrote that Trump’s renewed push was tied to “affordability” becoming a top voter concern, while J.P. Morgan analyst Vivek Juneja warned, “This rate cap would not address the root of the problem.” 2
Credit cards are among the most expensive forms of borrowing, and that’s the point for lenders: higher rates help offset losses when borrowers don’t pay. This is “revolving credit” — balances can carry month to month, and interest compounds if people only make minimum payments. 3
Visa does not set card interest rates, but investors often treat the payments networks as a bet on the overall health of card spending. If issuers tighten credit lines or close accounts to protect margins, transaction growth can slow, and so can the fees Visa earns for moving money.
The downside case is messy: tighter credit can hit consumer spending, while borrowers who still need cash may shift into costlier, less regulated products. That risk matters more when the political temperature is already high and markets are jumpy.
There’s also a simpler alternative outcome. If lawmakers signal the cap is going nowhere, the trade can fade fast — today’s drop becomes a headline wobble, not a reset in earnings power.
Investors are also watching what bank executives say as fourth-quarter reporting starts this week, with JPMorgan due Tuesday and other big lenders later in the week. Guidance on card charge-offs, credit trends and fee income could shape how long this rate-cap story sticks to the sector.
For Visa, the next fixed date on the calendar is its annual shareholder meeting on Jan. 27. Traders will be looking for any fresh read-through on consumer spending trends and the policy backdrop as the Jan. 20 start date approaches. 4
