Credit Card Benefits May Be at Risk

Travel rewards, cashback, and flight points are often significant perks of having a credit card. But what happens if these benefits disappear?

In Albuquerque, New Mexico, the potential impact of federal legislation on credit card accounts is concerning. Ashley Fathergill, who owns Upside Goods Co., emphasizes that these benefits are crucial.

“We’re really pushing our boundaries to reach a broader audience in the southwest,” Fathergill explained. As her business expands, so do the challenges, particularly with credit card processing fees.

Fathergill notes these fees can average around 3% per transaction, which accumulates to thousands over time. “If I’m going to complain, I tend to do so mentally. I just have to push through and focus on my job,” she remarked.

Last week, she traveled to Washington, DC, to gain insight into how federal regulations could affect her business and clients. “What’s happening up there does impact our daily operations, though it’s not overwhelming,” she added.

While there, she learned about the Durbin-Marshall bill, which might be voted on next month. Essentially, it aims to foster competition in the credit card processing market and requires banks to offer at least one network beyond Visa and MasterCard for transactions.

“This really changes how we, as consumers and small businesses, utilize our credit cards,” Fathergill noted.

A competitive market could lead to reduced swipe fees, potentially decreasing costs for consumers. “When I first heard of this, it felt like peeling back layers of an onion—revealing that things might shift significantly,” she said.

Many of the rewards programs we enjoy are funded through these swipe fees, she continued. “Anyone with a credit card, whether it’s for a small business or everyday expenses, will feel the effects,” Fathergill stressed.

It’s a reminder that not all benefits are immediately obvious, she mused. “This definitely impacts everyone who holds a credit card, so we must stay informed,” she added.

Attempts to contact Senators Heinrich and Lejan regarding the bill did not yield a response.