Trump Targets Credit Card Swipe Fees, Sending Ripples Through Visa and Payment Sector

Former President Donald Trump has renewed his criticism of credit card transaction fees, calling them 'out of control' in a public statement on January 17, 2026. The comments come amid heightened political attention on financial regulation and consumer costs, particularly in the wake of recent legislative proposals targeting interchange fees. Trump’s remarks signal a potential return to regulatory action on payment processing, a topic that has drawn bipartisan interest in recent years. Interchange fees—typically ranging from 1.5% to 3% per transaction—represent a core revenue stream for major payment processors like Visa (V) and Mastercard (MA). In 2024, Visa generated $27.8 billion in transaction processing revenue, with interchange fees accounting for over 70% of that total. A reduction in these fees, even by a modest 0.5 percentage point, could result in a $1.4 billion annual revenue loss for Visa alone, based on 2024 transaction volume. The market reacted swiftly, with Visa shares dropping 1.8% and Mastercard declining 1.5% within two trading sessions following the comments. Investors are now pricing in increased odds of federal legislation or FTC enforcement action, particularly if Trump secures the Republican nomination or wins the 2028 election. The potential for a rules change is especially relevant given the Federal Trade Commission’s ongoing investigation into payment network pricing practices. While companies like Visa and Mastercard maintain that interchange fees reflect the cost of fraud prevention, network infrastructure, and merchant services, political pressure is mounting. The outcome could reshape the competitive landscape, potentially benefiting retailers and small businesses but significantly affecting the profitability of payment processors.