NEW YORK, January 12, 2026, 13:15 ET — Regular session
- Visa shares dropped roughly 1.6% amid pressure from a proposed U.S. credit-card rate cap hitting card-related stocks
- Analysts note that any cap would probably require Congressional approval, but headline risk is driving up volatility
- Traders are eyeing bank earnings this week and Tuesday’s CPI as the next signals for consumer credit trends
Shares of Visa Inc dropped Monday, weighed down by investor selling following President Donald Trump’s call to cap credit-card interest rates for one year. By 1:15 p.m. ET, Visa had slipped $5.52, or 1.6%, to $344.25. Mastercard shares fell 1.8%, and American Express dipped 4.2%.
The proposal zeroes in on banks and card issuers responsible for setting interest rates, leaving networks like Visa untouched. Still, traders see it as a fresh indication that Washington is ready to intervene in consumer finance, a move that often ripples across the entire payments sector.
Wall Street largely sees the move as tough to pull off without Congress, but the risk premium appeared in prices fast. TD Cowen noted that “a card rate cap can only be done by Congress, not executive order,” and called the odds of a federal cap passing slim. 1
Trump proposed a one-year cap on credit card rates at 10%, starting Jan. 20, though he didn’t specify how card companies would be compelled to comply. UBS Global noted it would require “an Act of Congress” to enforce such rate limits. J.P. Morgan analyst Vivek Juneja cautioned that “this rate cap would not address the root of the problem and could push consumers towards more expensive debt.” 2
Credit card debt hit $1.23 trillion by the end of Q3, a Federal Reserve report cited by Reuters shows, highlighting how entrenched card borrowing is in everyday spending. Jefferies flagged potential restrictions from card issuers that could dampen retail sales and broader growth. Truist Securities added that such limits might push some segments into the red, especially subprime borrowers — those with weaker credit histories. 3
Visa’s impact is more subtle. It doesn’t pocket interest from card loans, but it earns fees whenever transactions pass through its network. When credit lines tighten, that can translate into fewer swipes and lower purchase amounts.
The broader market has been volatile. U.S. stocks recovered from an early drop sparked by renewed worries over the Federal Reserve’s independence. Investors are also bracing for Tuesday’s U.S. CPI report. Jordan Rizzuto of GammaRoad Capital Partners noted the market requires “some type of action” before headline policy shifts provoke a sustained move. 4
Visa’s core narrative this week centered on volume trends, travel, and cross-border spending, alongside questions about whether consumer activity holds steady amid high rates. But any policy move that makes issuers reconsider credit risk could quickly disrupt those expectations.
In October, Visa projected low double-digit net revenue growth for fiscal 2026 on a constant-dollar basis, despite a slowdown in cross-border volume growth compared to earlier quarters. This situation has investors watching closely to see if spending momentum can withstand fresh shocks, including political ones. 5
The immediate danger for bears is that the rate-cap threat fades in Congress and the sector rebounds, making Monday’s sell-off just a brief headline-driven move. The larger risk lies in the issue lingering, sparking a broader battle over card pricing and fees that drags on the group’s troubles.
Traders are bracing for updates on credit-card trends as major banks kick off earnings season this week. All eyes will also be on any fresh developments from Washington ahead of the Jan. 20 deadline flagged by Trump. Visa’s annual meeting is set for Jan. 27. 6
