Visa Shares Slip As Trump Backs Credit Card Competition Act

Visa Inc (NYSE:V) shares are marginally lower on Tuesday as the company faces pressure following a recent push from President Donald Trump regarding credit card regulations. The stock’s decline comes as it is challenged by potential changes that could impact its business model.

• Visa shares are consolidating. What’s the outlook for V shares?

How The Credit Card Competition Act Could Reshape Visa

The recent selling pressure on Visa follows Trump’s endorsement of the Credit Card Competition Act, which aims to disrupt the current duopoly held by Visa and Mastercard. Analysts at Goldman Sachs estimate that even a modest shift in payment volume away from these networks could reduce Visa’s earnings by about 3%.

This regulatory threat raises concerns about the sustainability of Visa’s high-margin fee structure, which is vital for its profitability. If the proposed changes are enacted, banks may demand lower network fees, further squeezing Visa’s revenue streams.

Visa’s High-Margin Fee Engine

While Visa does not earn interest like traditional banks, the company functions as one of the toll-takers of the global economy, collecting network fees that issuers and merchants pay to access high-yield credit lending. However, this ecosystem is fragile.

If regulations squeeze issuer revenue through capped APRs and mandated alternative routing, the fallout could be twofold: banks will demand lower fees to preserve their margins, and merchants will gain the leverage to route volume through cheaper networks.

This shift directly threatens the high-margin, recurring revenue that underpins Visa's massive U.S. franchise and Mastercard's premium cross-border business.

Why Visa’s Current Position Signals Caution

Currently, Visa is trading approximately 4.1% below its 100-day simple moving average (SMA). Over the past 12 months, shares have increased by 1.34% and are positioned closer to their 52-week highs than lows, suggesting a relatively stable performance.

The RSI is at a neutral level, indicating no immediate overbought or oversold conditions. Meanwhile, the MACD is below its signal line, suggesting some bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum.

• Key Resistance: $336.00
• Key Support: $324.50

Why Analysts Are Bullish Ahead Of Earnings

Investors are looking ahead to the next earnings report on January 29.

• EPS Estimate: $3.14 (Up from $2.75 YoY)
• Revenue Estimate: $10.69 billion (Up from $9.51 billion YoY)
• Valuation: P/E of 32.2x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $396.15. Recent analyst moves include:

• B of A Securities: Upgraded to Buy (Target $382.00) (Dec. 11, 2025)
• HSBC: Upgraded to Buy (Raised Target to $389.00) (Dec. 8, 2025)
• Macquarie: Outperform (Lowered Target to $410.00) (Oct. 29, 2025)

Valuation Insight: While the stock trades at a premium P/E multiple, the strong consensus and 14% expected earnings growth suggest analysts view this growth as justification for the 23% upside to analyst targets.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Visa, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Weak (Score: 22.36/100) — Stock is underperforming relative to the market.
• Quality: Strong (Score: 91.9/100) — Balance sheet remains healthy.
• Value: Risk (Score: 9.92/100) — Trading at a steep premium relative to peers.
• Growth: Moderate (Score: 49.88/100) — Growth potential is average compared to the market.

The Verdict: Visa’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Quality score indicates a solid balance sheet, the low Momentum and Value scores suggest that the stock may be overpriced, prompting caution among investors.

Top ETF Exposure

• State Street Financial Select Sector SPDR ETF (NYSE:XLF): 7.44% Weight
• The Financial Select Sector SPDR Fund (NYSE:XLF): 7.71% Weight
• Akre Focus ETF (NYSE:AKRE): 9.58% Weight

Significance: Because V carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Visa Shares Trade Lower Tuesday

V Price Action: Visa shares were down 0.78% at $325.80 at the time of publication on Tuesday, according to Benzinga Pro data.