Credit Card Interest Rates Under Scrutiny
JPMorgan Chase & Co. has decided to oppose President Trump’s proposed cap of 10% on credit card interest rates. During a recent earnings call, the bank’s finance chief emphasized that this shift could negatively impact both consumers and the economy as a whole.
“If that happens, it’s going to be very bad for consumers and it’s going to be very bad for the economy,” said Jeremy Burnham, the company’s Chief Financial Officer.
He warned that such a cap would require significant changes in the way JPMorgan’s credit card business operates.
Burnham mentioned that “everything is on the table” regarding how the bank might respond to these proposed changes.
CEO Jamie Dimon echoed this sentiment, stating that adjustments would need to be made to the company’s models to address the added risks posed by ongoing price controls.
“It would be dramatic,” he remarked during a call with analysts.
Currently, JPMorgan holds the title of Japan’s largest credit card issuer by outstanding balance. By 2025, it is projected to manage approximately $211 billion in credit card debt, making up about 18% of the U.S. market.
The bank had around $235 billion in outstanding U.S. credit card loans as of the third quarter of 2025, a number expected to grow, particularly after it agreed to manage Apple’s credit card portfolio.
The discussion around credit card regulations has intensified, with Trump pushing for support of the Credit Card Competition Act, a bipartisan effort aimed at allowing retailers to shift transactions away from major networks like Visa and Mastercard.
In a social media post, Trump claimed that this measure would help put an end to what he described as “out-of-control swipe fee rip-offs,” indicating that the scope of his crackdown includes not just interest rates but the payment systems too.
The proposed legislation would mandate that large banks provide merchants with options to route transactions through channels other than Visa and Mastercard, which could greatly disrupt the established fee structures advantageous to these companies.
Senators Dick Durbin and Roger Marshall have reignited efforts to introduce this bill, which has garnered backing from retailers eager to lessen their processing expenses.
While these fresh demands have stirred uncertainty in the markets, there remains skepticism in Congress since the banking sector has historically resisted such reforms.
Analysts remain doubtful about the likelihood of passage, even with Trump’s endorsement, viewing it as part of a broader campaign to hold Wall Street accountable for rising costs that burden consumers.
As of Tuesday afternoon, Visa shares were down nearly 4%, while Mastercard fell over 3.5%. The companies have yet to respond to requests for comment.
