Overview
- Trump called for a one-year ceiling of 10% on credit-card APRs starting Jan. 20, 2026, announcing the move on Truth Social without outlining an enforcement mechanism.
- Financial and payments shares fell on Monday after the announcement, with major banks and card-focused issuers as well as Visa, Mastercard, and American Express trading lower.
- The Electronic Payments Coalition warned that a 10% cap would close or severely restrict 82% to 88% of open accounts and severely limit access for borrowers with credit scores below 740, with higher fees and reduced rewards likely for others.
- Analysts and legal scholars said the White House lacks unilateral authority to impose such a limit and that any enforceable cap would require congressional legislation and could face court challenges.
- Policy debate sharpened as backers cited potential consumer savings of roughly $100 billion a year, opponents predicted tighter credit and fewer rewards, and analysts said buy-now-pay-later and alternative lenders could benefit if banks pull back.