I am an art teacher looking for some tips regarding cutting used credit cards. Recycling is always a good lesson! Please advise regarding settings and experience. Thanks!
IIRC, the core is some kind of PVC variant, which means they may release chlorine when cut, which will damage the laser.
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and anybody who breaths it.
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See if you can get your hands on Formica (or similar) samples. Similar size, safer to laser (if well ventilated at least), and they come in fun colors and designs. An interior designer or kitchen design place should have extras now and again throughout the year.
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Use scissors. 
(You need to be exceptionally careful what kinds of plastic you burn in the laser. Some kinds of plastics and faux leather/vinyl fabrics release toxic and corrosive gasses when burned.)
Visit your friendly neighborhood prescriber and ask for a stack of GoodRx discount cards. They’re stiff laminated cardstock, same size as a credit card, and should be safe to laser. They send me boxes of them all the time, 'way more than I can ever use, and I’ve already donated some to a local artist who was using cut up credit cards for one of her painting techniques. 
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