New York, Jan 13, 2026, 16:17 EST — After-hours
- Visa shares dropped roughly 4.5% Tuesday, dragging down other card-payment stocks.
- Traders zeroed in on President Donald Trump’s plan to cap credit-card interest rates at 10%, weighing the potential ripple effects on consumer spending.
- Investors are eyeing policy details as Visa’s shareholder meeting and earnings report approach in late January.
Visa (NYSE: V) shares dropped nearly 5% Tuesday after President Donald Trump proposed a one-year cap on credit-card interest rates, intensifying pressure on the payments sector.
Visa fell 4.5% to $327.90. The drop signals growing concern that Washington is moving beyond mere talk and gearing up to take action against the card industry—a sector usually driven by spending patterns and regulatory threats.
Last week, Trump proposed a 10% cap on rates but didn’t specify enforcement details. Wall Street experts say passing such a cap would probably need new legislation. A Federal Reserve report revealed U.S. credit-card debt hit $1.23 trillion by the end of Q3.
JPMorgan Chief Financial Officer Jeremy Barnum warned on the bank’s earnings call that a cap “would be very bad for consumers” and could force the lender to pull back on credit. Federal Reserve data showed the average credit card interest rate at 20.97% in November. Trump’s proposal sets a cap for one year starting Jan. 20. Reuters
U.S. stocks slipped after data revealed December consumer prices climbed 2.7% year over year, reinforcing bets on Federal Reserve rate cuts. Financials took the hardest hit amid ongoing discussions over the credit-card proposal.
Mastercard dropped 3.8%, tracking closely with Visa. Lenders and card issuers showed mixed results after facing steeper losses earlier in the week when the proposal initially shook the sector.
Visa’s drop weighed heavily on the Dow during morning trading, shaving off close to 70 points from the price-weighted index, MarketWatch reported.
Not everyone on Wall Street expects a rate cap to slam network revenue. Mizuho analyst Dan Dolev argued the move might actually “increase swipe frequency” as consumers shift toward debit cards and “buy now, pay later” plans—which still bring in fees for the networks. He maintained an Outperform rating and set a $425 price target on Visa, Barron’s reported.
Visa released its 2026 Global Economic Outlook on Tuesday, projecting global GDP growth at 2.7% this year and consumer spending to rise by 2.4%. The company also expects business investment to gain momentum. This is key for investors since Visa’s revenue depends heavily on the frequency of payments made by both consumers and businesses.
The policy approach remains murky and lacks specifics. The administration has introduced a range of measures to lower credit costs, but the outcome is uncertain; a rigid cap might cause lenders to cut credit lines for riskier borrowers, which would reduce spending and the payment volumes that generate fees for Visa.
Traders are looking for something tangible—bill language, agency guidance, or a firmer signal on whether Congress will pursue the proposal. Visa’s annual meeting is set for Jan. 27, per its proxy statement.
Visa’s upcoming earnings report is the next major event to watch. Nasdaq expects the company to release results on Jan. 29. That date could shift focus away from politics and back onto spending patterns, cross-border activity, and future guidance.
