Op-Ed: Credit Card Legislation Raises Concerns for Western North Carolina’s Tourism Recovery
In 2024, Hurricane Helene devastated western North Carolina. Over a year later, we're still picking up the pieces. Infrastructure is still being repaired. Small businesses are still trying to rebuild. The folks in the foothills of the Blue Ridge Mountains, where I own a fishing gear business that also offers guided fishing trips, have worked tirelessly to restore river access and reopen the outdoor spaces people travel from all over the country to enjoy.
Western North Carolina currently stands at a pivotal moment in its recovery, and we need to do everything we can to encourage visitors to experience the rivers, trails, and mountains that make this region so special. Now, more than ever, our communities need the support that tourism brings, and policies out of Washington can either help sustain our recovery or undermine it.
One piece of legislation that threatens to undermine our progress is the Durbin-Marshall credit card bill. This proposal would mandate that banks enable at least two payment networks on their credit cards. Supporters of this proposal argue that introducing additional, alternative payment networks in the system would lower credit card processing fees, also known as interchange fees. What they overlook is that those small fees help fund the very credit-card rewards programs that millions of Americans, including travelers and small business owners like myself, rely on.
Many tourists who visit our state do so using their credit card rewards. According to data from Airlines for America, credit card rewards delivered $423 million in economic activity to North Carolina in 2023, helping families afford travel and supporting the tourism economy that regions like ours depend on. If the government forces banks to process transactions over these alternative payment networks, the revenue that supports these rewards programs would shrink, and with it, the rewards themselves. Taking away the rewards consumers use to travel means fewer tourists visiting our region, making it harder for small businesses like mine to grow.
Small businesses like mine would lose out on rewards too. A University of Miami study found that one-tenth of all credit card rewards flow to small businesses. That same study estimated that Durbin-Marshall could cost small businesses one billion dollars in lost rewards. Many of us use business credit cards to manage inventory, cover operational expenses, or keep the lights on when business is slow. Taking away the revenue stream that funds rewards programs is akin to taking money out of the pockets of small businesses.
It’s become even clearer that government intervention isn’t the right way to address concerns about interchange fees because there is already a better path forward: The largest payment networks, Visa and Mastercard, and a group of small businesses, recently reached a proposed settlement that would lower interchange fees without putting at risk the credit card rewards that small businesses and tourists know and love. While the settlement is still pending court approval, it’s evidence that the free market is already working toward solutions.
I’m urging Senator Thom Tillis and Senator Ted Budd to oppose the Durbin-Marshall credit card bill. The last thing western North Carolina needs right now is federal intervention that makes it harder for tourists to visit and for small businesses to stay afloat.
By Jeff Queen - owner of Queen Tackle
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