Trump Sets Sights on Card Swipe Charges Following Warnings on Interest Rates

Trump Pushes for Overhaul of Credit Card Fees

Former President Donald Trump, after previously criticizing high credit card interest rates, is now turning his attention to the fees merchants pay when customers use credit cards. He has voiced support for the Credit Card Competition Act, a bipartisan bill in Congress designed to encourage more competition among payment networks by allowing retailers to process transactions outside of the dominant Visa and Mastercard systems.

On Tuesday, Trump urged lawmakers via social media to back the proposed legislation, which would require major banks to give merchants the option to route payments through alternative networks. This move directly challenges the profitable business models of Visa and Mastercard, whose shares dropped by at least 4% in New York trading. American Express also saw its stock fall by 0.7%.

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Trump described the bill as a way to end what he called the “out of control Swipe Fee ripoff.”

The legislation, reintroduced by Republican Senator Roger Marshall and Democratic Senator Dick Durbin, has long been championed by large retailers who want to reduce the high processing fees associated with credit card transactions in the U.S.—fees that are typically much higher than those in other countries. However, many lawmakers with ties to the banking industry have resisted these changes.

According to TD Cowen analyst Jaret Seiberg, the bill’s prospects for passing remain slim, though he noted that any increase in Republican support would be closely watched. Seiberg suggested that the push is largely political, providing another avenue for Trump to criticize banks over rising costs.

With the midterm elections approaching, Trump has increasingly focused on affordability issues, putting pressure on Wall Street as banks resist his proposals to cap credit card interest rates—a stance that has found support among both progressive and some Republican lawmakers.

JPMorgan Chase & Co.’s Chief Financial Officer Jeremy Barnum warned that imposing a cap on rates would fundamentally alter the bank’s business and negatively impact American consumers, adding that the bank is prepared to fight the measure on all fronts.

Some opponents argue that such reforms could limit access to credit for many Americans. The Bank Policy Institute has cautioned that banks might respond by closing credit lines, raising minimum payments, or introducing new fees, particularly for higher-risk borrowers.

Senate Leaders Respond and Market Outlook

Senate Majority Leader John Thune and House Speaker Mike Johnson both expressed reservations about the bill, with Thune warning it could restrict credit access for many people nationwide. Johnson noted that further discussions would be needed to resolve disagreements over the proposal. Thune also indicated that the Senate is likely to vote on the bill, as there is interest from lawmakers on both sides of the debate.

Analyst Andrew Jeffrey from William Blair advised investors to consider buying shares of Visa, Mastercard, and American Express during this period of political uncertainty, suggesting that the shifting regulatory environment could create opportunities. Jeffrey also noted that American Express might benefit from the proposed changes, given its position as the third-largest credit network, and that other payment networks could gain if they expand into credit routing.

Reporting assistance by Erik Wasson and Katherine Chiglinsky.

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