Visa shares plunge 4.46% amid regulatory pressures from Trump's Credit Card Competition Act

Visa shares plunged 4.4639% in pre-market trading on Jan. 14, 2026, extending a sell-off driven by escalating regulatory pressures from President Donald Trump’s push for the Credit Card Competition Act. The proposed legislation aims to curb high swipe fees by mandating large banks offer merchants alternative payment networks outside the dominant Visa-Mastercard duopoly, directly challenging the payment giant’s market control.

The move follows renewed rhetoric from Trump, who intensified calls for the bill to “stop the out-of-control Swipe Fee ripoff.” Market participants reacted with heightened caution as the policy threatens to erode profit margins for payment networks by fostering competition. Analysts highlighted that the legislation could force banks to diversify processing options, potentially reducing reliance on Visa and Mastercard’s infrastructure, which currently handles the majority of U.S. credit card transactions.

Investor sentiment worsened after JPMorgan Chase executives warned that similar regulatory proposals, such as a 10% cap on credit card interest rates, could destabilize banking models. While the direct impact of interest rate restrictions remains speculative, the broader regulatory uncertainty has amplified risks for the sector. The Defense Credit Union Council and military banking groups also criticized the bill, arguing it would harm service members and prioritize big retailers over consumers.

With the Federal Reserve set to draft rules under the proposed act within a year, stakeholders are closely monitoring how the policy might reshape the credit card landscape. For now, the immediate focus remains on whether the legislation gains traction in Congress, with investors pricing in potential disruptions to the existing payment ecosystem dominated by Visa and Mastercard.