Former President Donald Trump proposed capping credit card interest rates at 10%. This cap would last for one year, beginning January 20, 2026. The proposal aims to address high consumer borrowing costs, which currently range between 20% and 30%.
Trump announced the policy via social media, providing no formal legislative or regulatory details. Despite the lack of specifics, such a policy could significantly impact the financial industry.
Network operators, including Mastercard, face potential indirect effects. These impacts stem from changes to issuer profitability and overall consumer credit availability. The full scope of the policy remains contingent upon final implementation details.