Durbin-Marshall Bill Raises Alarm for Latino Small Businesses

A Warning From Arizona's Business Community

A new opinion piece is drawing attention to a long-running legislative fight over credit card swipe fees, warning that the proposed Durbin-Marshall Credit Card Competition Act could squeeze access to capital for Latino entrepreneurs in Arizona. Writing as a guest commentary, the president of CreaLatinx argues that the bill, framed by supporters as a way to lower fees for merchants, could instead have unintended consequences for small business owners who rely heavily on business credit cards to manage cash flow and fund early-stage growth 1.

The bill would require large banks to allow transactions to be routed through at least one network beyond the dominant Visa and Mastercard systems, a change proponents say will inject competition into the card-payment market and reduce fees charged to merchants. Critics, including the CreaLatinx president, counter that reduced interchange revenue could push card issuers to scale back rewards programs and, more consequentially, tighten underwriting standards — making it harder for entrepreneurs with thinner credit files or newer businesses, a population that includes many Latino-owned startups, to qualify for the credit lines they depend on 1.

The Broader Credit Card Backdrop

This debate is unfolding against a backdrop of historically high consumer credit card debt. National balances have climbed toward record territory, with total U.S. credit card debt reported near $1.26 trillion, edging closer to the all-time high of $1.28 trillion and reflecting a $21 billion quarterly increase alongside rising delinquency rates 23. That climate of stretched household finances adds urgency to any policy change affecting how credit is priced and extended, whether to consumers or to small business owners who often blend personal and business credit to keep their companies running.

Why Business Credit Cards Matter

Business credit cards remain a critical financing tool for entrepreneurs, offering not just purchasing power but also rewards, expense tracking, and a way to separate personal from business spending 57. Products like the Ink Business Unlimited card, which offers flat-rate cash back without category tracking, illustrate the kind of low-maintenance tools many small business owners rely on for everyday operations 7. Meanwhile, card issuers continue to compete aggressively for both consumer and business customers through rich sign-up bonuses, such as recent offers exceeding $750 in travel rewards, underscoring how central interchange-funded perks are to the current card ecosystem 4.

Swipe Fees as a National Flashpoint

The swipe-fee debate is not confined to Washington. State-level lawmakers, including in New Jersey, have also pushed to tighten regulations around the fees merchants pay on card transactions, reflecting broader dissatisfaction with the costs businesses absorb on every sale 6. Supporters of reform argue these fees inflate prices for consumers and burden small retailers, while opponents warn that disrupting the current system risks reducing credit access and rewards precisely when household and small-business debt levels are already elevated. As the Durbin-Marshall bill continues to be debated, the tension between lowering merchant costs and preserving credit availability for underserved entrepreneurs is likely to remain a central point of contention.