New York, Jan 12, 2026, 14:25 (EST) — Regular session underway.
Mastercard Incorporated shares slipped 1.7% to $565.93 in Monday afternoon trading, mirroring a wider drop in card-related stocks. Visa also dropped 1.7%, while American Express tumbled 4.2% during the same session.
The moves followed U.S. President Donald Trump’s call to cap credit card interest rates at 10% for one year starting Jan. 20, though he didn’t specify enforcement details. UBS Global analysts noted such a cap would require Congressional approval. Seaport Research’s Bill Ryan added that Trump is revisiting the idea amid rising affordability concerns among voters. 1
Credit card borrowing, a form of “revolving credit” where balances carry over and accrue interest if unpaid, is averaging rates close to 19.65%, according to Bankrate data cited by Reuters. U.S. credit card balances climbed to $1.23 trillion by the end of Q3, Reuters reported. Jefferies cautioned that tighter card limits might drag down consumption and dent GDP. Meanwhile, Truist Securities warned the business risks turning unprofitable under such caps, with subprime cards expected to suffer the most. 2
Mastercard doesn’t lend money or decide interest rates like card issuers do. Instead, it operates a worldwide payments network that handles authorizations, clears and settles transactions, and collects fees based on payment volume. 3
That didn’t shield the stock. Investors often view the major networks as a gauge for consumer credit and card spending, particularly with Washington considering changes to lending rules.
The policy route remains unclear. TD Cowen noted that a broad rate cap would require legislation and rated its chances of passing as low. Barclays highlighted the president’s limited power to enact the measure alone, citing past congressional roadblocks. 4
Separately, Mastercard made news over the weekend in a different way: Google announced the launch of the Universal Commerce Protocol, an open standard designed to enable “agentic commerce,” and named Mastercard as one of the endorsers. The protocol aims to empower AI tools to take a bigger role in shopping, including managing checkout across Google’s AI platforms. 5
Investors are on alert for lenders to react early, whether by tightening underwriting standards, cutting rewards, or shifting expenses to debit and other payment methods. Any new developments — or added uncertainty — from Washington could keep the sector volatile.
Bank earnings season kicks off soon, putting card margins and demand under the spotlight. JPMorgan leads off Tuesday, followed by Bank of America, Citigroup, and Wells Fargo later this week. 6
