Colorado:
Guard
Your Card

Colorado lawmakers have introduced legislation to completely upend the way your credit and debit cards works – creating confusion for consumers, higher costs for small businesses and potentially jeopardizing your personal information.

Interchange benefits business and consumers

Businesses pay a small percentage of each purchase – approx. 2% – to process your credit and debit card transactions. That fraction is used to safeguard credit card networks, prevent fraud, and fund reward programs.

But a bill in Colorado would create a carveout so the tax and tip portion of an overall purchase is exempt from card processing costs known as interchange.

A massive handout to corporate mega-stores

So why are some Colorado politicians trying to change the easy, convenient, hassle-free credit and debit card system we rely on every day? Because corporate mega-stores and the largest convenience store chains are trying to pocket more money.

A burden to small businesses & consumers

But small businesses can’t afford this change. If HB 1282 passes, Colorado small business owners, who are already on tight margins, could have to pay for new card processing systems and implementation of new accounting headaches.

Worse yet, to ensure your transaction is accurately processed under the new changes, businesses could have to share additional information about the purchases you make –potentially compromising your privacy.

This is why no other state in the country or no other country around the world processes credit and debit card transactions this way. In fact, 29 other states have rejected this idea because of the impact and hurdles it would have on commerce across the state – just so the big corporations can make more money.

Take Action

Tell your state’s leaders: Colorado cannot afford the credit card chaos this experimental bill will cause. Small businesses cannot afford the new costs and cardholders will not tolerate the loss of convenience and privacy these new changes will bring – just so corporate mega-stores and nationwide convenience chains can pocket more money. The current credit and debit card processing system works for consumers and provides a valuable service to small businesses by facilitating efficient purchases, universal acceptance, and state-of-the-art protections against fraud and personal identity theft.

Contact Your State Lawmakers Now

Avoid Credit Card Chaos

Who pays the price if the legislation moves forward?

would need to upgrade their point-of-sale technology and deal with new accounting headaches — while getting little of the benefit corporate megastores would receive.
could have to pay for sales tax and tips in cash if the bill moves forward, and private information about what consumers are purchasing will be required to be shared. What’s more, because interchange is what makes rewards and points possible for consumers, reductions to interchange will also reduce the rewards they receive.
would see their livelihoods negatively impacted when consumers are required to tip in cash, a particularly problematic scenario for gig workers who rely on electronic tips as part of their wages.
would be put at a disadvantage against national competitors as a ruling on similar legislation in Illinois suggests the law might only apply to them.
would need to use scarce resources to defend legislation that is pre-empted by federal law.

Resources

Association of Flight Attendants-CWA, AFL-CIO's Opposition to CO House Bill 25-1282

International Association of Machinists and Aerospace Workers' Opposition to "Swipe Fee Fairness Act"

Credit card mandates hurt immigrant families and jobs we rely on

Colorado’s proposed card fee regulations do more harm than good

Our Local Colorado Partners

Paid for by the Electronic Payments Coalition

www.electronicpaymentscoalition.org

1747 Pennsylvania Ave. Washington, DC 20006