Author argues the Visa and Mastercard selloff on Trump's proposed credit card rate cap is misguided because the networks profit from swipe volume, not lending, and lower rates would boost credit usage.
V — LONG The author argues the selloff in Visa is misguided because Visa does not issue debt; it earns fees on every transaction over its network, so lower rates driving higher credit usage would increase swipe volume and revenue. The author expects a buying opportunity once finance billionaires persuade Trump to walk back the 10% cap suggestion, and says Visa will be fine even if the cap becomes reality. The main risk acknowledged is the cap actually being implemented, though the author downplays its impact on the networks versus the banks.
So, buying opportunity alert for when the dust settles and all the finance billionaires get ahold of Trump to make their case for walking back his suggestion. Even if this 10% cap becomes reality, Visa and MC will be just fine.
MA — LONG The author argues the selloff in Mastercard is misguided because Mastercard does not issue debt; it earns fees on every transaction over its network, so lower rates driving higher credit usage would increase swipe volume and revenue. The author expects a buying opportunity once finance billionaires persuade Trump to walk back the 10% cap suggestion, and says Mastercard will be fine even if the cap becomes reality. The main risk acknowledged is the cap actually being implemented, though the author downplays its impact on the networks versus the banks.
They don't issue the debt. They make money everything a phone is tapped, a chip is read, or a card is swiped.
This Reddit post, published January 13, 2026, features u/RedShirtPete discussing V, MA. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: u/RedShirtPete · Tickers: V, MA