This Week in Credit Cards: States May Install Rate Caps

Punxsutawney Phil saw his shadow on Monday, which, according to tradition, means we’re in for six more weeks of winter. 

Whether a groundhog can accurately make predictions about the weather is a matter of debate. But here at CardRates, we believe that having a solid understanding of recent events in the credit card world can give us a better sense of what’s on the horizon for the card industry. 

We’ve summarized the major developments in the card space this week to keep you up to date.

A group of senators is in favor of allowing states to determine the future of credit card interest rates. President Donald Trump put credit cards in the spotlight in January when he called for a 10% cap on interest rates to go into effect for one year. 

The coalition of senators introduced legislation — called the Empowering States’ Rights to Protect Consumers Act — to give states the power to limit rates on lending products for their residents.

“Congress must act to bring down those interest rates at a federal level, but it’s also critical that states have the ability to deliver relief,” Sen. Elizabeth Warren (D-MA) said in a press release on the legislation.

The Federal Reserve Bank of Philadelphia released a report indicating that credit card spending grew during 2025’s third quarter. And cardholders with credit scores below 660 accounted for the sharpest increase in average purchase volume. 

The Philadelphia Fed report also revealed improving overall credit performance.

“All card delinquency measures have shown year-over-year improvement during 2025, and net charge-off rates declined in the second and third quarters, reflecting the cumulative impact of several years of tightened access to credit cards for the riskiest borrower segments,” the Philadelphia Fed wrote in the report.

PayPal’s Board of Directors removed the company’s CEO, Alex Chriss, earlier this week, replacing him with Enrique Lores. Lores has served on PayPal’s board for nearly five years and has been the Board Chair since 2024.

The shakeup came as the company issued an underwhelming forecast for profits in 2026.

Lores will have his work cut out for him as the new CEO of PayPal. The company’s stock has largely been in decline over the past five years.

Businesses in the market for a credit card with a low APR may want to consider U.S. Bank’s new product. The company rolled out its Business Shield Visa this week, and it comes with an introductory 0% annual percentage rate on purchases and balance transfers for up to 18 billing cycles.

Anthony Merola, Head of Bank Brand and Small Business Cards at U.S. Bank, said in a press release that the card can help small business owners navigate resource challenges.

“Featuring an industry-leading 0% extended introductory APR on purchases and balance transfers, and access to Spend Management, our expense management platform, this card is a transformative solution for both new and seasoned business owners looking to safeguard their business from the unexpected,” Merola added.

JPMorgan Chase and The Walt Disney Company unveiled a new credit card this week that is sure to be a hit with Disney fans. The card allows consumers to earn Disney Reward Dollars they can use toward Disney cruises and Disney theme park tickets.

“Our collaboration with Disney enables us to deliver meaningful solutions and added value to our Cardmembers, and we appreciate the opportunity to work alongside such an iconic company,” Chris Cracchiolo, President of Co-Brand Credit Cards at Chase, said in a release on the new product.

The card — which comes with an annual fee of $149 — is available in designs featuring Disney characters.

As we approach the end of another eventful week in the credit card arena, here’s a reminder to visit CardRates.com for in-depth coverage of the biggest stories in the sector. With six more weeks of winter in store — according to a certain groundhog, at least — now may be the perfect time to catch up on what you’ve missed.