A Colorado bill that would prohibit payment card networks from charging an interchange fee on the sales tax portion of a debit card or credit card transaction is headed to the full state Senate for a vote.
The bill, SB26-134, was introduced on March 4 and was advanced by a state Senate committee on Monday (April 27), according to the website of the Colorado General Assembly.
The Senate is set to vote on the bill Tuesday (April 28), according to the Senate Calendar.
The Colorado Restaurant Association (CRA) said in a March 4 press release that it is among the supporters of SB26-134.
“SB 134 is a common-sense proposal that will eliminate credit-card interchange (or swipe) fees on sales taxes, which will help save Colorado restaurants and retailers tens of thousands of dollars or more at a time when every penny counts,” the association said in the release.
The National Restaurant Association said in a March 26 post on X that SB-134 will help Colorado restaurants save on sales tax processing fees, fight the “credit card duopoly,” and promote fairer, transparent payments.
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“Restaurants are paying millions every year in fees, costs that hurt businesses and raise menu prices for consumers,” the association said in the post.
The Colorado Bankers Association said in a summary of its priority bills that it opposed SB26-134.
“CBA is opposing this legislation for impact business, consumers and the economy,” the association said in the summary.
Colorado Bankers Association President and CEO Jenifer Waller shared a Friday (April 24) press release from the U.S. Office of the Comptroller of the Currency (OCC) in which the regulator said federal law preempts an Illinois law regarding interchange fees.
“OCC makes it clear states do not have authority over national banks regarding state attempts to regulate or limit interchange,” Waller wrote in her post.
PYMNTS reported April 20 that the OCC is moving to reshape how interchange is governed in the United States and is pushing federal oversight into a fight that started in Illinois but won’t stay there.
On April 6, PYMNTS reported that credit union groups are continuing their campaign against the Illinois interchange law, which is scheduled to go into effect in July. The Illinois law prevents banks and credit card companies from instituting interchange fees on the sales tax and tip portions of credit and debit card transactions.
