New York, Jan 13, 2026, 10:53 AM ET — Regular session
- Visa shares dropped roughly 5% early on, as investors digested fresh U.S. policy risks hitting card and consumer-finance companies.
- The stock’s decline mirrored a wider pullback in payment stocks, as Mastercard also took a noticeable hit.
- Traders await specifics on the proposed cap, alongside bank earnings insights into credit trends and card profitability.
Shares of Visa (V) dropped 5.1% to $325.85 by late morning Tuesday, deepening a selloff in payment stocks sparked by President Donald Trump’s call for a one-year cap on credit card interest rates.
The proposal has shifted “headline risk” throughout the card ecosystem right as major U.S. banks kick off earnings season and investors hunt for signs of a slowdown in consumer credit. This is crucial for Visa, which earns revenue from payment volumes, while card issuers’ readiness to offer credit influences overall spending trends. (Reuters)
The stakes are high. According to Federal Reserve data referenced by analysts following the proposal, the average credit card interest rate stood at 20.97% in November. A cap would force issuers to reconsider their lending criteria and terms. (Reuters)
Mastercard (MA) dropped 5.5% during the session, with American Express (AXP) sliding 0.4%.
Trump urged a 10% ceiling on credit card interest rates beginning Jan. 20, but didn’t specify enforcement details, Reuters reported. (Reuters)
Wall Street analysts wasted no time highlighting the challenges. TD Cowen noted that a cap would require Congressional approval, not just an executive order. Barclays echoed that the president’s power to enforce it alone is limited. (Reuters)
Political pressure continues to rattle sentiment. Bill Ryan, an analyst at Seaport Research, noted that Trump revisiting the idea makes sense given rising voter worries over affordability. J.P. Morgan’s Vivek Juneja cautioned that imposing a cap might drive borrowers to pricier, non-bank lenders. (Reuters)
Industry groups warn that credit access would take a hit. The Electronic Payments Coalition pointed out that nearly every credit card tied to a credit score below 740—between 82% and 88% of active accounts—would face closure or severe limits under a 10% interest cap. Executive chairman Richard Hunt argued that a “one-size-fits-all” cap would actually harm families rather than help them. (Reuters)
JPMorgan Chase CFO Jeremy Barnum echoed concerns on Tuesday, warning, “If it were to happen, it would be very bad for consumers, very bad for the economy.” He added that the bank would need to scale back and adjust its operations. (Reuters)
Banks are beginning to outline the potential impact a cap might have on card economics. JPMorgan’s recent earnings underscored just how crucial credit cards still are to its strategy, despite the sector grappling with the looming policy changes. (Reuters)
Visa took a broader view on Tuesday, unveiling its 2026 Global Economic Outlook predicting 2.7% growth in global GDP. The company highlighted that this “average” growth figure obscures significant changes driven by AI adoption and evolving trade dynamics. Visa Chief Economist Wayne Best described the economy as being “fundamentally rebuilt by AI, new trade patterns and digital innovation.” (Visa)
Some analysts remain optimistic about the medium-term outlook for major networks. Oppenheimer’s Rayna Kumar highlighted “agentic commerce” — a full AI-driven shopping experience from discovery to payment — as a potential 2026 theme. She singled out Mastercard and Visa as her top large-cap picks. (Investopedia)
The immediate risk is straightforward: should the cap gain momentum in Congress, issuers might respond by slashing credit lines, hiking fees, and trimming rewards—putting the brakes on spending and transaction growth. Even if the proposal fails, the uncertainty could linger, keeping investors on edge until there’s clarity. (Reuters)
Investors are now focused on whether lawmakers will take formal steps on the rate-cap proposal before Jan. 20. Bank executives are also expected to weigh in this week on card loan demand, credit quality, and whether they’ve started tightening underwriting. (Reuters)
