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REDDIT

The sell off of Visa and MC is misguided

R
Jan 13, 2026 · 20:46

Trump's meddling in the free market, his suggestion to cap interest rates on credit cards, is artificial)y depressing these two companies.

What most investors are not considering is that lower rates will drive credit usage up. This is how these companies make money... They don't issue the debt. They make money everything a phone is tapped, a chip is read, or a card is swiped. Visa and MasterCard run the connective network between banks and merchants allowing consumers to pay anywhere. So, more swipes equal bigger revenue for Visa and MC.

Now the banks... They would be rightly fucked over by a forced 10% cap. That will hit their revenues even if people use more credit.

So, buying opportunity alert for when the dust settles and all the finance billionaires get ahold of Trump to make their case for walking back his suggestion. Even if this 10% cap becomes reality, Visa and MC will be just fine.