Why Visa and Mastercard are seeing their sharpest stock drops in half a year
MarketWatch • • business
Key Points:
- Visa and Mastercard operate payment processing networks but do not directly lend to consumers, unlike companies such as American Express, Capital One, and Synchrony Financial.
- President Donald Trump's proposal to cap credit-card interest rates at 10% for one year could lead lenders to tighten credit access, potentially reducing spending volume.
- While lenders might need to significantly change their business models under the proposed rate cap, Visa and Mastercard are less likely to face such drastic adjustments.
- The primary risk for Visa and Mastercard is a possible decline in transaction volume if credit becomes less accessible due to the interest rate cap.
