This Week in Credit Cards: Capital One to Buy Brex and Leading Banks Mull Cards with 10% Rate Caps

As parts of the country continue to try to figure out how to navigate life amid ever-growing mounds of snow and plunging temperatures, news on the credit card front continues to heat up.

From major acquisitions and a new card release to responses from leading banks to the call for a cap on credit card interest rates, this week was full of impactful stories for industry insiders. But don’t worry if you missed anything. We’re here to bring you up to speed with a roundup of major stories from the week.

Capital One made a major move in 2025 when it completed its purchase of Discover. And it’s starting 2026 with another big buy. The company recently announced it has entered into an agreement to purchase fintech Brex, which offers financial solutions geared toward businesses.

The purchase will put Capital One in position to become more competitive in the business payments marketplace. Richard D. Fairbank, Founder, Chairman, and CEO of Capital One, heaped praise on Brex in a press release on the acquisition. 

“Brex invented the integrated combination of corporate credit cards, spend management software, and banking together in a single platform,” he said.

The transaction has a value of $5.15 billion and is set to close midyear. 

President Donald Trump’s call to place a 10% cap on credit card interest rates may have sent some credit card issuers scrambling to determine how they could continue to serve their customers with such a restriction in place. 

A recent Bloomberg report reveals that Bank of America and Citigroup may have come up with a solution. The two banks are separately considering expanding their card lineups to include products that meet Trump’s rate expectations. That strategy is likely to cause far less strain on an issuer’s resources than revamping current card structures.

Credit bureau Equifax announced a new product, Income Confirm, that offers card issuers a more detailed picture of how risky a potential borrower may be. 

The solution may significantly help card companies, but Scott Collins, General Manager and Senior Vice President of Financial Institutions at Equifax, noted in a press release that the tool can benefit consumers as well.

“Income Confirm equips lenders to make decisions based on facts, not estimates, and to optimize initial credit lines based on the consumer’s true ability to pay,” Collins said. “This supports a smoother, faster experience for applicants, and can also help drive early new cardholder engagement and spend.”

Between calls for a cap on interest rates and lowering late fees, credit card companies may have felt that politicians were unfairly attacking their revenue streams to start the new year.

But President Trump included a positive mention of credit cards in his recent remarks regarding Trump Accounts, which are investment accounts for U.S. citizens who are under the age of 18.

“I’m also pleased to announce that Visa is creating a brand new platform which will allow credit card holders to deposit their cash back rewards directly into Trump accounts,” Trump said on Wednesday, according to PYMNTS.

Budget-friendly airline Avelo this week introduced a new credit card it is offering in partnership with Cardless. 

The card comes with travel-related benefits, including a fee-free carry-on bag and priority boarding. In comments from the press release, Andrew Levy, Founder and CEO of Avelo Airlines, highlighted why his company chose to partner with Cardless over a legacy bank.

“When Cardless demonstrated what their platform could deliver — the speed, control, personalization, and seamless integration with our loyalty program, I was impressed,” Levy said.

January has been an action-packed month in the credit card space, and we enjoyed bringing you coverage of the stories that are helping shape the industry. Be sure to check in with us next week to start your February off on the right foot.