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What’s at Stake in Colorado

The Colorado General Assembly is considering a bill, SB 26-134, that would fundamentally alter how credit and debit card transactions are processed. It would upend a payments system that underpins modern commerce, risking the removal of hundreds of thousands of businesses from seamless access to the global payments network. It would also prohibit interchange service costs from being applied to the sales tax portion of card transactions.

Pushed by corporate mega-stores like Walmart and Target, SB 26-134 would inject chaos into everyday transactions for small businesses and consumers alike. No jurisdiction anywhere in the world calculates credit and debit card transactions this way. That reality is reflected in recent outcomes: in 2025 alone, similar bills were rejected in 26 jurisdictions and passed nowhere.

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Colorado cannot afford the credit card chaos this untested bill would cause. Small businesses cannot afford the new costs and cardholders will not tolerate the loss of convenience and privacy these changes will bring – all so corporate mega-stores and nationwide convenience chains can pocket more money. The current credit and debit card processing system works and provides valuable services by facilitating efficient purchases, universal acceptance and state-of-the-art protections against fraud and identity theft.

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SB 26-134 WOULD WREAK HAVOC IN COLORADO:

This bill would create credit card chaos for consumers, small businesses and local financial institutions. Here’s how:

They face increased costs and headaches while corporate mega-stores reap all the benefits.
These vital financial institutions would face burdensome compliance requirements and excessive fees that threaten their viability.
Today, businesses of all sizes accept cards seamlessly because standardized default interchange rates keep the system simple and predictable. Without universal access, merchants would be forced to negotiate rates directly with thousands of banks and credit unions worldwide — an unworkable system that would lead to lost sales and frustrated customers who won't know if their card works until it is rejected at the point of sale.
Because SB 26-134 prohibits interchange on taxes, consumers would be forced to pay the sales tax portion in cash requiring two separate transactions for a single purchase.
Eroding interchange state by state puts businesses and consumers at risk by jeopardizing funding for fraud prevention and cybersecurity investments that keep card payments secure.
Interchange funds popular credit card rewards programs that consumers depend on — including airline, hotel, and cash-back cards — and these programs are likely to disappear if interchange revenue is eroded state by state.
The state would have to use taxpayer money to defend these policies against legal challenges.

Opposition to the Proposed Legislation

While this legislation is purported to help small businesses, we believe it will harm good union jobs in Colorado while delivering millions in additional profits to corporations like Walmart, that systematically fight against workers’ right to organize and collectively bargain.

Richie JohnsenGeneral Vice President, IAM Union – Air Transport Territory

Policies that weaken community banking ultimately weaken local economies.

Brett WyssPresident and chief executive of Integrity Bank & Trust, an employee-owned community bank in Colorado Springs · Colorado Politics

When interchange fees are reduced, the costs of the system don’t disappear; they shift to consumers, community banks, local businesses, and the workers and nonprofits who rely on fast, secure payment processing.

Shawn OsthoffPresident, Bank of Colorado · BizWest

This piece of legislation will in fact have a negative impact on business and agriculture lending and the other ways community banks support their communities.

Independent Community Bankers of Colorado

This bill will cause credit unions to face downstream impacts and cost shifts that larger institutions can absorb but smaller institutions cannot, leading to increased costs and lost services for the millions of Coloradans we serve.

Colorado’s Credit Unions

Resources

IAM Union Opposes "Swipe Fee Fairness Act"

Colorado Credit Union Oppose Interchange Legislation in Colorado

Independent Community Bankers of Colorado: Letter in Opposition of Draft Interchange Legislation

Big-box retailers push credit-card legislation undermining local economies

Colorado shouldn’t subject customers to fraud by rewriting the rules of how we pay

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

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