Shares of major credit card networks and payment companies fell sharply on Monday after former U.S. President Donald Trump proposed capping credit card fees at 10%, a move that rattled investors and raised fresh concerns about regulatory risk in the payments industry.
According to reports, Trump floated the idea as part of a broader push to reduce costs for American consumers, arguing that card fees charged by banks and payment networks have become excessive and unfairly burden households and small businesses. The proposal immediately triggered a sell-off in stocks tied to card payments and consumer finance.
Companies exposed to interchange and processing fees were among the hardest hit, as investors weighed the potential impact of a hard cap on one of the industry’s most profitable revenue streams. Analysts described the market reaction as swift and unforgiving, with one widely shared reaction on social media summing it up bluntly: “Yikes.”
Credit card fees, particularly interchange fees charged to merchants, are a cornerstone of the U.S. payments ecosystem. Any move to cap them at a fixed level would represent a major shift in policy and could significantly compress margins for card issuers, banks, and payment networks.
While Trump did not provide detailed legislative language, the proposal echoes long-running bipartisan criticism in Washington over card fees and their impact on prices. Previous efforts to regulate interchange fees have faced strong resistance from the financial industry, which argues that such fees fund fraud protection, rewards programs, and the expansion of digital payments.
Market participants also noted that the proposal is not yet law and would require congressional approval, meaning its path forward remains uncertain. Still, the reaction highlights how sensitive credit card and fintech stocks are to regulatory headlines, especially in an election-year environment where consumer costs are a dominant political issue.
For now, investors appear to be pricing in higher policy risk, even as analysts caution that the proposal could be softened, delayed, or blocked entirely if it advances beyond campaign rhetoric.
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