President Donald Trump just fired another shot across the bow of the U.S. payments industry — and Wall Street is paying close attention.
Late Tuesday, Trump signaled support for the long-debated Credit Card Competition Act, a proposal that would force large banks to allow credit cards to route transactions over at least two unaffiliated networks, potentially breaking the near-duopoly held by Visa Inc. (NYSE:V) and Mastercard Inc. (NYSE:MA).
Shares of Visa and Mastercard sunk 4.5% and 3.8% respectively on Tuesday, both notching their worst daily drop in over six months.
Currently, they account for 84% of U.S. credit card volume and power a payments ecosystem that generates an estimated $223 billion in annual revenue, according to Goldman Sachs.
The legislation aims to reduce swipe fees paid by merchants, which stood at 2.35% per credit card transaction in 2024, according to Nilson data.
The move also follows Trump’s Jan. 10 Truth Social post calling for a one-year cap on credit card interest rates at 10%, framing the issue as one of affordability and consumer protection.
Goldman Flags Risk To Visa And Mastercard
“We believe the potential …Full story available on Benzinga.com
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