News - Trump's Critique of Swipe Fees Shakes Visa and Mastercard Stocks

In an unexpected market tremor, Visa and Mastercard have experienced their steepest stock drops in six months, prompted by recent remarks from former President Donald Trump. On Tuesday, Visa shares plummeted by 4.5%, marking their worst single-day decline since a notable drop on June 18, 2025. Similarly, Mastercard's stock fell by 3.8%, echoing the trend of financial sector volatility. The catalyst for this downward trend appears to be Trump's endorsement of the Credit Card Competition Act (CCCA), a bill aimed at tackling the issue of high swipe fees imposed by credit card companies. Trump's message, released on Truth Social, has revitalized a legislative effort that had struggled to gain traction in previous congress sessions. Despite the stock market reaction, analysts harbor skepticism about the viability of the CCCA. Andrew Jeffrey from William Blair expressed doubts about the impact of the proposal, suggesting that while Visa and Mastercard might face a temporary financial setback, their inherent cost advantages and robust service offerings position them to adapt and retain pricing power. Darrin Peller of Wolfe Research highlights the potential for increased regulatory scrutiny, particularly concerning credit card issuers and the broader financial landscape. Lasting uncertainty looms over the market, fueled by fears of antagonistic regulatory measures despite an expectation for regulatory leniency in the current climate. Industry experts largely view Trump's move as a strategic maneuver rather than a genuine push for legislative change. This perspective aligns with the notion that Trump's actions are more about rallying political support ahead of upcoming midterm elections than about enacting significant policy changes. As investors weigh the implications, the power dynamics between politics and market forces remain under close observation, suggesting a complex interplay that will continue to influence financial landscapes in the months to come.