New York, January 13, 2026, 17:40 EST — After-hours
- Mastercard shares dropped roughly 3.8% Tuesday, following a wider slump in card and bank stocks
- Investors are digesting the impact of a proposed one-year 10% cap on credit-card interest rates
- Mastercard will release its quarterly earnings on Jan. 29
Shares of Mastercard dropped 3.8% on Tuesday, slipping further to $544.99 in after-hours trades. The decline came amid investor concerns over President Donald Trump’s plan to limit credit-card interest rates. Visa also took a hit, falling 4.5% during the regular session. (Reuters)
The policy threat arrives at a tricky time for markets. Big banks are reporting earnings this week, while traders scramble to figure out how a rate cap might affect credit availability and consumer spending.
The cap on annual percentage rates, or APRs, targets banks that issue cards, not the payment networks. Investors worry that issuers might respond by cutting credit limits or shutting accounts, which could reduce transaction volumes and hit Mastercard’s fee income.
JPMorgan Chief Financial Officer Jeremy Barnum warned the proposal would be “very bad for consumers, very bad for the economy,” adding the bank would need to scale back the credit it provides. Barnum noted the move is developing “very quickly” and “starting with a social media post,” as Trump also backed reducing card swipe fees—the charges merchants pay to accept cards. (Reuters)
Credit card debt stacks up quickly since it’s “revolving credit,” allowing balances to roll over each month with interest adding on if only minimum payments are made. U.S. credit card balances hit $1.23 trillion by the end of Q3, according to Reuters. (Reuters)
Some investors doubt the politics will progress much further. UBS analysts pointed out that implementing rate caps would require an Act of Congress, warning that an executive order would probably face intense legal battles. Still, the uncertainty has weighed on financial stocks. (Reuters)
Analyst opinions are beginning to diverge. Compass Point upgraded Mastercard from Neutral to Buy, lifting its price target to $735 from $620. The firm cited a potential sector rebound following fourth-quarter results. (TipRanks)
Mizuho’s Dan Dolev and analysts at Morgan Stanley suggested the impact on card networks may not be as severe as initially thought. Dolev highlighted a potential move toward debit cards and “buy now, pay later” options, both of which still bring in fee income. (Barron’s)
Mastercard announced it will report its fourth-quarter and full-year 2025 earnings on Jan. 29, with a conference call scheduled for 9:00 a.m. Eastern. (Mastercard Investor Relations)
Separately, Mastercard announced a collaboration with travel platform Agoda to develop a loyalty redemption tool. This tool integrates Agoda’s travel inventory into Mastercard’s Global Redemption Suite, offering cardholders greater flexibility in using their points. (Mastercard)
Washington remains the key wildcard. Should the rate cap gain momentum—or if swipe fee cuts move from chatter to law—lenders might overhaul card economics, impacting spending, rewards, and network fees. If those efforts falter, the sector’s steep selloff could reverse just as fast.
Next in focus: any updates from the White House or Congress before the proposed Jan. 20 start date, plus Mastercard’s Jan. 29 earnings report for insights on holiday shopping and cross-border payment patterns.
