Velera just dropped their August 2026 Payments Index, and while there’s plenty to unpack about the overall economic picture, one trend jumped out.
Business credit cards might be flying under the radar, but they’re packing serious potential for credit unions working with small and medium-sized businesses.
Let’s start with the good news. July card spending stayed on its upward trajectory, proving consumers are still showing up with their wallets open. Debit purchases continued their winning streak, while credit purchases stayed in positive territory—though they’ve cooled a bit from their recent peaks. Back-to-school shopping gave July a nice boost, which helped balance out the fact that Amazon and other retailers decided to throw their big promotional parties in June this year instead of July like they did in 2025.
The Economic Vibes Are… Complicated
Consumer confidence in July was giving off some serious mixed signals. The University of Michigan’s Index of Consumer Sentiment climbed to 55.2—that’s an 11.5% jump from June and the second month in a row heading upward. Lower gas prices and continued spending helped drive that improvement across pretty much every demographic slice you can imagine. But here’s the catch: sentiment is still down 11% from a year ago. People are still feeling the sting of higher prices, even if things are moving in the right direction. Meanwhile, the Conference Board’s Consumer Confidence Index went the opposite way, dropping 1.4 points to 90.8. So yeah, it’s complicated.
The Job Market Hit a Speed Bump
July’s employment numbers came in with a plot twist nobody saw coming. The Bureau of Labor Statistics reported a loss of 23,000 jobs—a pretty stark contrast to the 83,000-job gain economists were expecting. The unemployment rate did tick down slightly to 4.1%, but that was mostly because fewer people were participating in the labor force (which dropped to 61.4%). Wage growth also cooled to 3.15%.
The job losses hit local government, education, and retail trade, though healthcare continued adding positions like clockwork. On the private sector side, ADP reported 44,000 new jobs, with gains concentrated in education, health services, financial activities, and professional services. Leisure, hospitality, trade, transportation, and utilities weren’t so lucky. One bright spot: people who switched jobs saw their pay jump 4.4% annually—the fastest pace in nearly a year.
Inflation News You Can Actually Use
Finally, some relief on the inflation front. The Consumer Price Index rose just 0.1% in July, bringing the annual inflation rate to 3.4%—down from 3.5% in June. Shelter costs were the main culprit, accounting for about two-thirds of the monthly increase. Medical care, airline fares, and dining out also climbed. But declines in energy and motor vehicle insurance helped keep the overall number from getting worse. Core CPI (which strips out food and energy) increased 0.2% after staying flat in June.
All eyes are now on the Federal Open Market Committee meeting scheduled for September 15-16. Most expect interest rates to stay put, but the real headline will be the updated Summary of Economic Projections, which offers a window into what policymakers think is coming down the pike.
Why Business Cards Deserve More Attention
“Business cards may represent a smaller share of overall card activity, but they point to a meaningful opportunity for credit unions,” said Sheba Carnes, Vice President of Product Management at Velera. “Small businesses are often highly engaged relationships, and many already look to credit unions for service, guidance and community connection. As these businesses expand, credit unions have an opportunity to grow with them by offering the payment solutions, expense management tools and financial support that help them manage cash flow, separate business and personal spending, and deepen the relationship over time.”
Translation: small businesses might be using fewer cards overall, but when they do, they’re power users—and they tend to stick around.
July’s Key Numbers Worth Remembering
- Consumer spending stayed strong: Debit purchases grew 8.8% year over year, while credit purchases increased 2.7%. Money Services, Goods, and Gasoline drove debit growth, while Gasoline and Services led on the credit side.
- Inflation stayed modest: CPI rose just 0.1%, with the annual rate dropping to 3.4% as energy declines offset higher shelter costs.
- Business credit cards punch above their weight: Year to date, they accounted for only 3.2% of credit transactions and 8.4% of purchases overall—but they outperformed consumer cards in transactions per account, purchases per account, average purchase size, and average interchange rate.
- Small institutions see even bigger impact: At smaller financial institutions, business cards represented 25.8% of credit transactions and 42.7% of purchase volume year-to-date. That’s a significant chunk of activity that’s easy to overlook.
The bottom line? While everyone’s watching consumer spending trends, business credit cards are quietly building a compelling case for credit unions looking to grow their small business relationships. The numbers might be smaller, but the opportunity is real—and growing.