U.S. President Donald Trump has called for a temporary one-year cap on credit card interest rates at 10%, effective January 20, 2026, coinciding with the first anniversary of his return to office. The proposal was announced via a social media post on January 9, 2026, but lacked specific details on implementation or enforcement, leaving it unclear whether it would be a voluntary measure or require government policy.
The current credit card market features APRs ranging from 17-18% for borrowers with excellent credit to rates in the mid-30s for subprime borrowers. This makes the proposed 10% cap a potentially major market shift. The announcement comes as Americans' credit card debt has surpassed $1.23 trillion, with the average household carrying roughly $10,563 in credit card debt.
While the direct impact of an interest rate cap would first hit issuing banks—which collect the interest income—second-order effects could eventually reach payment networks like Visa. Banks facing squeezed margins might tighten lending standards, reduce credit availability, cut rewards programs, or push for higher merchant processing fees, which could slow transaction volumes and pressure Visa's fee-based revenue over time.
The proposal has faced immediate and strong opposition from the banking industry. Trade groups including the American Bankers Association, the Bank Policy Institute, and the Consumer Bankers Association warn that a statutory cap would reduce credit access for riskier borrowers, potentially driving them toward payday lenders and other unregulated alternatives. Billionaire investor Bill Ackman echoed this sentiment, calling the idea a mistake.
Political reactions have been mixed. Senator Bernie Sanders criticized Trump, accusing him of previously deregulating banks. Senator Josh Hawley, however, responded positively, calling it a "fantastic idea." The market is largely treating the proposal as an uncertain policy risk with low odds of near-term enactment due to the lack of specifics and formidable industry opposition.
