First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0801.01 Caroline Martin x5902
HOUSE BILL 25-1282
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING PROHIBITIONS ON CERTAIN PAYMENT CARD NETWORK101
PRACTICES INVOLVING ELECTRONIC PAYMENT TRANSACTIONS .102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill enacts the "Swipe Fee Fairness and Consumer Safeguards
Act" (act), which prohibits a payment card network from:
! Fixing or conspiring to fix an interchange fee with, or on
behalf of, a covered credit card issuer or another payment
card network;
! Establishing, putting forward, or implementing a fee
HOUSE SPONSORSHIP
Brooks and Lindstedt,
SENATE SPONSORSHIP
Daugherty and Kirkmeyer,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. schedule that the payment card network knows, or
reasonably should know, has been used by a covered credit
card issuer other than the payment card network to
determine the amount of an interchange fee charged or
received by the covered credit card issuer in the current or
previous calendar year;
! Establishing, charging, or putting forward on a fee
schedule an interchange fee if the fee includes a percentage
multiplied by the amount of a transaction and the fee does
not exclude any amount attributable to a tax or gratuity on
the transaction, or increasing fees in an attempt to or in a
manner that would circumvent such interchange fee
prohibition;
! Requiring a merchant that accepts credit cards that are
enabled for processing over the payment card network to
accept all credit cards issued by a covered credit card issuer
that are enabled for processing over the payment card
network;
! Distributing, publishing, or otherwise using data from an
electronic payment transaction, except in certain
circumstances;
! Charging a fee to a consumer or merchant related to a
disputed credit card transaction until the dispute has been
resolved and the consumer or merchant has been provided
written notice of the determination; or
! Imposing a penalty on a merchant for setting prices in a
manner that complies with state and federal law.
The bill prohibits a payment card network from establishing,
putting forward, or implementing a fee schedule that the payment card
network knows or reasonably should know has been used by one or more
issuers other than the payment card network to determine the amount of
an interchange fee received or charged in respect to a charitable
contribution, unless the interchange fee does not exceed:
! 0.2% of the amount of a charitable contribution made by
means of a debit card; or
! 0.3% of the amount of a charitable contribution made by
means of a credit card.
If a payment card network violates the act, a merchant, consumer,
or other individual or entity that is injured as a result may bring a civil
action. A payment card network that is found to have violated the act as
a result of a civil action other than a certified class action is liable in an
amount equal to the sum of:
! The greater of:
! The amount of actual damages sustained plus
interest; or
HB25-1282
-2- ! $500; or
! 3 times the amount of actual damages sustained if
the payment card network engaged in bad faith
conduct; plus
! The costs of the action plus reasonable attorney fees.
If a payment card network is found liable in a certified class
action, a successful plaintiff may recover actual damages, injunctive relief
allowed by law, and reasonable attorney fees and costs.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 5-2-215 as2
follows:3
5-2-215. Prohibition on certain payment card network4
practices - short title - legislative declaration - definitions. (1) Short5
title. T
HE SHORT TITLE OF THIS SECTION IS THE "SWIPE FEE FAIRNESS AND6
C
ONSUMER SAFEGUARDS ACT".7
(2) Legislative declaration. T
HE GENERAL ASSEMBLY FINDS AND8
DECLARES THAT:9
(a) C
OLORADO MERCHANTS AND CONSUMERS PAID AN AMOUNT10
ESTIMATED TO BE OVER TWO BILLION DOLLARS IN CREDIT CARD11
INTERCHANGE FEES IN 2023 AND PAID AN AMOUNT ESTIMATED TO BE OVER12
TWO HUNDRED MILLION DOLLARS IN INTERC HANGE FEES COLLECTED ON13
SALES TAX IN 2023;14
(b) I
NTERCHANGE FEES ACT AS AN INFLATION MULTIPLIER BY15
ADDING TWO TO FOUR PERCENT IN ADDITIONAL COSTS TO EVERY CREDIT16
CARD TRANSACTION A MERCHANT RUNS . HIGH INTERCHANGE FEES COST17
THE AVERAGE FAMILY OVER ONE THOUS AND ONE HUNDRED DOLLARS IN18
THE COST OF GOODS AND SERVICES LAST YEAR .19
(c) I
N RECENT YEARS, COLORADO RESTAURANTS HAVE BEEN20
NEGATIVELY IMPACTED BY FACTORS INCLUDING THE COVID-1921
HB25-1282-3- PANDEMIC AND RISING COSTS FOR LABOR , FOOD, AND RENT. MORE THAN1
FOUR HUNDRED TWENTY -FIVE COLORADO RESTAURANTS CLOSED OVER2
THE LAST THREE YEARS , RESULTING IN AN ESTIMATED TWENTY -ONE3
THOUSAND TWO HUNDRED FIFTY WORKERS WHO LOST THEIR JOBS .4
(d) T
HE RESTAURANT INDUSTRY IS MADE UP OF HUNDREDS OF5
THOUSANDS OF SMALL BUSINESSES THAT RUN ON DIFFERENT BUSINESS6
MODELS. SEVEN IN TEN RESTAURANTS ARE SINGLE UNIT OPERATIONS , AND7
NINETY PERCENT OF RESTAURANT LOCATIONS EMPLOY LESS THAN TEN8
PEOPLE. THE INDUSTRY IS HIGHLY COMPETITIVE AND CONSTANTLY9
CHANGING IN RESPONSE TO TRENDS AND ECONOMIC PRESSURES . THE10
AVERAGE SMALL BUSINESS RESTAURANT RUNS ON A THREE - TO11
FIVE-PERCENT PRE-TAX MARGIN AND MAKES ABOUT ONE MILLION12
DOLLARS IN ANNUAL SALES.13
(e) F
OR RESTAURANT OPERATORS , ACCEPTING DEBIT AND CREDIT14
CARDS IS IMPERATIVE TO BEST SERVING CUSTOMERS AND STAYING IN15
BUSINESS. HOWEVER, ACCEPTING DEBIT AND CREDIT CARD PAYMENTS IS16
ONE OF THE HIGHEST COSTS BORNE BY RESTAURANT OPERATORS , OFTEN17
BEHIND ONLY LABOR AND FOOD . TWO PAYMENT CARD NETWORKS18
CONTROL OVER EIGHTY PERCENT OF THE CREDIT CARD MARKETPLACE IN19
THE UNITED STATES, FORCING MERCHANTS TO PAY THE HIGHEST20
INTERCHANGE FEES IN THE INDUSTRIALIZED WORLD . RESTAURANT21
OPERATORS DO NOT HAVE THE BARGAINING POWER TO NEGOTIATE THE22
CREDIT CARD RATES IMPOSED BY THE TWO DOMINANT PAYMENT CARD23
NETWORKS, NOR ARE RESTAURANT OPERATORS PRACTICALLY ABLE TO24
FIND ALTERNATIVE PAYMENT PROCESSING OPTIONS .25
(f) T
HIS SECTION BENEFITS COLORADO MERCHANTS AND26
CONSUMERS BY KEEPING OVER TWO HUNDRED MILLION DOLLARS WITHIN27
HB25-1282
-4- THE STATE AND STRENGTHENING LOCAL ECONOMIC ACTIVITY . THE ACT1
WILL HELP RESTAURANTS IN COLORADO SAVE MONEY ON INTERCHANGE2
FEES PAID ON SALES TAX AND TIPS, WHICH WILL ALLOW RESTAURANT3
OPERATORS TO HIRE MORE EMPLOYEES , INVEST IN THEIR BUSINESSES, KEEP4
PRICES COMPETITIVE, AND CONTRIBUTE TO THE COMMUNITIES THEY5
SERVE.6
(3) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT7
OTHERWISE REQUIRES:8
(a) "A
CQUIRER BANK" MEANS A MEMBER OF A PAYMENT CARD9
NETWORK THAT CONTRACTS WITH A MERCHANT FOR THE SETTLEMENT OF10
ELECTRONIC PAYMENT TRANSACTIONS . AN ACQUIRER BANK MAY11
CONTRACT DIRECTLY WITH MERCHANTS OR INDIRECTLY THROUGH A12
PROCESSOR TO PROCESS ELECTRONIC PAYMENT TRANSACTIONS .13
(b) "A
UTHORIZATION" MEANS THE PROCESS THROUGH WHICH A14
MERCHANT REQUESTS APPROVAL FOR AN ELECTRONIC PAYMENT15
TRANSACTION FROM THE ISSUER .16
(c) "B
AD FAITH CONDUCT " MEANS FRAUDULENT , WILLFUL,17
KNOWING, OR INTENTIONAL CONDUCT THAT CAUSES INJURY .18
(d) "C
HARITABLE CONTRIBUTION " MEANS A CHARITABLE19
CONTRIBUTION AS DEFINED IN 26 U.S.C. SEC. 170 (c) THAT IS MADE VIA20
ELECTRONIC PAYMENT TRANSACTION .21
(e) "C
LEARANCE" MEANS THE PROCESS OF TRANSMITTING FINAL22
TRANSACTION DATA FROM A MERCHANT TO AN ISSUER FOR POSTING TO23
THE CARDHOLDER'S ACCOUNT AND THE CALCULATION OF FEES AND24
CHARGES, INCLUDING INTERCHANGE FEES, THAT APPLY TO THE ISSUER AND25
THE MERCHANT.26
(f) "C
OVERED CREDIT CARD ISSUER" MEANS A CREDIT CARD ISSUER27
HB25-1282
-5- THAT, DURING ANY POINT IN THE PREVIOUS CALE NDAR YEAR , HELD1
CONSOLIDATED WORLDWIDE BANKING AND NON -BANKING ASSETS,2
INCLUDING ASSETS OF AFFILIATES, OTHER THAN TRUST ASSETS UNDER3
MANAGEMENT, OF MORE THAN FIFTY BILLION DOLLARS.4
(g) "D
EBIT CARD" MEANS A CARD OR OTHER PAYMENT CODE OR5
DEVICE ISSUED OR APPROVED FOR USE THROUGH A PAYMENT CARD6
NETWORK TO DEBIT AN ASSET ACCOUNT AND INCLUDES A GENERAL USE7
PREPAID CARD, AS DEFINED IN 15 U.S.C. SEC. 16931-1 ET SEQ. "DEBIT8
CARD" DOES NOT INCLUDE PAPER CHECKS.9
(h) "E
LECTRONIC PAYMENT TRANSACTION " MEANS A10
TRANSACTION IN WHICH A PERSON USES A DEBIT CARD , A CREDIT CARD, OR11
OTHER PAYMENT CODE OR DEVICE ISSUED OR APPROVED THROUGH A12
PAYMENT CARD NETWORK TO DEBIT A DEPOSIT ACCOUNT OR USE A LINE OF13
CREDIT.14
(i) "F
EE SCHEDULE" MEANS ANY SCHEDULE, LIST, TABLE, CHART,15
AGREEMENT, COMMUNICATION , OR OTHER DOCUMENT , WHETHER16
PUBLICLY AVAILABLE OR NOT, THAT SETS FORTH AN AMOUNT OR FORMULA17
FOR DETERMINING ONE OR MORE FEES .18
(j) "G
RATUITY" MEANS MONEY VOLUNTARILY GIVEN TO AN19
EMPLOYEE FROM A GUEST, PATRON, OR CUSTOMER IN CONNECTION WITH20
SERVICES RENDERED.21
(k) "I
NTERCHANGE FEE" MEANS A FEE ESTABLISHED, CHARGED, OR22
RECEIVED BY A PAYMENT CARD NETWORK FOR THE PURPOSE OF23
COMPENSATING THE ISSUER FOR ITS INVOLVEMENT IN AN ELECTRONIC24
PAYMENT TRANSACTION .25
(l) "I
SSUER" MEANS A PERSON ISSUING A DEBIT CARD OR CREDIT26
CARD OR THE PERSON'S AGENT.27
HB25-1282
-6- (m) "MERCHANT" MEANS A PERSON THAT ACCEPTS ELECTRONIC1
PAYMENT TRANSACTIONS AND COLLECTS AND REMITS A TAX .2
(n) "P
AYMENT CARD NETWORK " MEANS AN ENTITY THAT:3
(I) D
IRECTLY OR THROUGH LICENSED MEMBERS , PROCESSORS, OR4
AGENTS PROVIDES THE PROPRIETARY SERVICES , INFRASTRUCTURE, AND5
SOFTWARE TO ROUTE INFORMATION AND DATA FOR THE PURPOSE OF6
CONDUCTING ELECTRONIC PAYMENT TRANSACTION AUTHORIZATION ,7
CLEARANCE, AND SETTLEMENT; AND8
(II) A
MERCHANT USES TO ACCEPT AS A FORM OF PAYMENT A9
BRAND OF DEBIT CARD, CREDIT CARD, OR OTHER DEVICE THAT MAY BE10
USED TO CARRY OUT ELECTRONIC PAYMENT TRANSACTIONS .11
(o) "P
ROCESSOR" MEANS AN ENTITY THAT FACILITATES, SERVICES,12
PROCESSES, OR MANAGES THE DEBIT OR CREDIT AUTHORIZATION , BILLING,13
TRANSFER, PAYMENT PROCEDURES , OR SETTLEMENT WITH RESPECT TO14
ANY ELECTRONIC PAYMENT TRANSACTION .15
(p) "S
ETTLEMENT" MEANS THE PROCESS OF TRANSMITTING SALES16
INFORMATION TO THE ISSUING BANK FOR COLLECTION AND17
REIMBURSEMENT OF FUNDS TO THE MERCHANT AND CALCULATING AND18
REPORTING THE NET TRANSACTION AMOUNT TO THE ISSUER AND19
MERCHANT FOR AN ELECTRONIC PAYMENT TRANSACTION THAT IS20
CLEARED.21
(q) "T
AX" MEANS ANY SALES, USE, OCCUPATION, OR EXCISE TAX22
IMPOSED BY THE STATE OR A UNIT OF LOCAL GOVERNMENT IN THE STATE .23
(4) Prohibition on certain payment card network practices. A24
PAYMENT CARD NETWORK , WHETHER DIRECTLY OR THROUGH AN AGENT ,25
ACQUIRER BANK, PROCESSOR, CONTRACT, REQUIREMENT, CONDITION,26
PENALTY, TECHNOLOGICAL SPECIFICATION, OR INDUCEMENT, SHALL NOT:27
HB25-1282
-7- (a) FIX OR CONSPIRE TO FIX AN INTERCHANGE FEE WITH , OR ON1
BEHALF OF, A COVERED CREDIT CARD ISSUER OR ANOTHER PAYMENT CARD2
NETWORK;3
(b) E
STABLISH, PUT FORWARD, OR IMPLEMENT A FEE SCHEDULE4
THAT THE PAYMENT CARD NETWORK KNOWS , OR REASONABLY SHOULD5
KNOW, HAS BEEN USED BY A COVERED CREDIT CARD ISSUER OTHER THAN6
THE PAYMENT CARD NETWORK TO DETERMINE THE AMOUNT OF AN7
INTERCHANGE FEE CHARGED OR RECEIVED BY THE COVERED CREDIT CARD8
ISSUER IN THE CURRENT OR PREVIOUS CALENDAR YEAR ;9
(c) E
STABLISH, CHARGE, OR PUT FORWARD ON A FEE SCHEDULE AN10
INTERCHANGE FEE IF:11
(I) T
HE FEE IS OR INCLUDES A PERCENTAGE MULTIPLIED BY THE12
GROSS DOLLAR AMOUNT OF A TRANSACTION CONDUCTED WITH A DEBIT13
CARD OR CREDIT CARD; AND14
(II)
THE FEE DOES NOT EXCLUDE FROM THE GROSS DOLLAR15
AMOUNT OF THE TRANSACTION ANY AMOUNT ATTRIBUTABLE TO A TAX OR16
GRATUITY ON THE TRANSACTION ;17
(d) I
NCREASE THE RATE OR AMOUNT OF FEES THAT APPLY TO THE18
PORTION OF A TRANSACTION OTHER THAN THE PORTION DESCRIBED IN19
SUBSECTION (4)(c)(II) OF THIS SECTION IN AN ATTEMPT TO OR IN A20
MANNER THAT WOULD CIRCUMVENT THE PROHIBITION SET FORTH IN21
SUBSECTION (4)(c) OF THIS SECTION;22
(e) R
EQUIRE A MERCHANT THAT ACCEPTS CREDIT CARDS THAT ARE23
ENABLED FOR PROCESSING OVER THE PAYMENT CARD NETWORK TO24
ACCEPT ALL CREDIT CARDS ISSUED BY A COVERED CREDIT CARD ISSUER25
THAT ARE ENABLED FOR PROCESSING OVER THE PAYMENT CARD NETWORK ;26
(f) D
ISTRIBUTE, PUBLISH, OR OTHERWISE USE DATA FROM AN27
HB25-1282
-8- ELECTRONIC PAYMENT TRANSACTION , EXCEPT TO:1
(I) P
ROCESS THE ELECTRONIC PAYMENT TRANSACTION ;2
(II) M
ONITOR FOR, DETECT, OR PREVENT FRAUD;3
(III) S
UPPORT LOYALTY, REWARDS, OR PROMOTIONAL OFFERS;4
(IV) T
AILOR PRODUCTS AND SERVICES TO SERVE CUSTOMERS '5
NEEDS; AND6
(V) O
THERWISE COMPLY WITH STATE OR FEDERAL LAW ;7
(g) C
HARGE A FEE TO A CONSUMER OR MERCHANT RELATED TO A8
DISPUTED CREDIT CARD TRANSACTION UNTIL THE DISPUTE HAS BEEN9
RESOLVED BY A DETERMINATION THAT THE CONSUMER OR MERCHANT IS10
LIABLE FOR THE TRANSACTION AND THE CONSUMER OR MERCHANT HAS11
BEEN PROVIDED WRITTEN NOTICE OF THE DETERMINATION ; OR12
(h) I
MPOSE A PENALTY ON A MERCHANT FOR SETTING PRICES IN A13
MANNER THAT COMPLIES WITH STATE AND FEDERAL LAW .14
(5) Limits on network fee-setting for charitable contributions.15
A
PAYMENT CARD NETWORK , WHETHER DIRECTLY OR THROUGH AN16
AGENT, ACQUIRER BANK , PROCESSOR, CONTRACT, REQUIREMENT,17
CONDITION, PENALTY, TECHNOLOGICAL SPECIFICATION, OR INDUCEMENT,18
SHALL NOT ESTABLISH, PUT FORWARD, OR IMPLEMENT A FEE SCHEDULE19
THAT THE PAYMENT CARD NETWORK KNOWS OR REASONABLY SHOULD20
KNOW HAS BEEN USED BY ONE OR MORE ISSUERS OTHER THAN THE21
PAYMENT CARD NETWORK TO DETERMINE THE AMOUNT OF AN22
INTERCHANGE FEE RECEIVED OR CHARGED IN RESPECT TO A CHARITABLE23
CONTRIBUTION, UNLESS THE INTERCHANGE FEE DOES NOT EXCEED :24
(a) T
WO-TENTHS OF ONE PERCENT OF THE AMOUNT OF A25
CHARITABLE CONTRIBUTION MADE BY MEANS OF A DEBIT CARD ; OR26
(b) T
HREE-TENTHS OF ONE PERCENT OF THE AMOUNT OF A27
HB25-1282
-9- CHARITABLE CONTRIBUTION MADE BY MEANS OF A CREDIT CARD .1
(6) Penalties. (a) I
F A PAYMENT CARD NETWORK VIOLATES THIS2
SECTION, A MERCHANT, CONSUMER, OR OTHER INDIVIDUAL OR ENTITY3
THAT IS INJURED AS A RESULT OF THE VIOLATION MAY BRING A CIVIL4
ACTION AGAINST THE PAYMENT CARD NETWORK . EXCEPT IN A CERTIFIED5
CLASS ACTION, AND NOTWITHSTANDING ANY OTHER LAW , ANY PAYMENT6
CARD NETWORK THAT, IN A CIVIL ACTION, IS FOUND TO HAVE VIOLATED7
THIS SECTION IS LIABLE IN AN AMOUNT EQUAL TO THE SUM OF :8
(I) T
HE GREATER OF:9
(A) T
HE AMOUNT OF ACTUAL DAMAGES SUSTAINED , INCLUDING10
PREJUDGMENT INTEREST OF EITHER EIGHT PERCENT PER YEAR OR AT THE11
RATE PROVIDED IN SECTION 13-21-101, WHICHEVER IS GREATER, FROM12
THE DATE THE CLAIM ACCRUED ;13
(B) F
IVE HUNDRED DOLLARS; OR14
(C) T
HREE TIMES THE AMOUNT OF ACTUAL DAMAGES SUSTAINED ,15
IF IT IS ESTABLISHED BY CLEAR AND CONVINCING EVIDENCE THAT THE16
PAYMENT CARD NETWORK ENGAGED IN BAD FAITH CONDUCT ; PLUS17
(II) I
N THE CASE OF ANY SUCCESSFUL ACTION TO ENFORCE SAID18
LIABILITY, THE COSTS OF THE ACTION TOGETHER WITH REASONABLE19
ATTORNEY FEES AS DETERMINED BY THE COURT .20
(b) I
N A CASE CERTIFIED AS A CLASS ACTION , A SUCCESSFUL21
PLAINTIFF MAY RECOVER ACTUAL DAMAGES , INJUNCTIVE RELIEF ALLOWED22
BY LAW, AND REASONABLE ATTORNEY FEES AND COSTS .23
(c) A
NY PERSON WHO BRINGS AN ACTION UNDER THIS SECTION24
THAT IS FOUND BY THE COURT TO BE FRIVOLOUS , GROUNDLESS, AND IN25
BAD FAITH, OR FOR THE PURPOSE OF HARASSMENT , SHALL BE LIABLE TO26
THE DEFENDANT FOR THE COSTS OF THE ACTION TOGETHER WITH27
HB25-1282
-10- REASONABLE ATTORNEY FEES AS DETERMINED BY THE COURT .1
(7) Antitrust authority. N
OTHING IN THIS SECTION LIMITS OR2
OTHERWISE AFFECTS THE ATTORNEY GENERAL 'S ANTITRUST AUTHORITY3
PURSUANT TO ARTICLE 4 OF TITLE 6.4
(8) Severability. I
F ANY PROVISION OF THIS SECTION OR THE5
APPLICATION OF THIS SECTION TO ANY PERSON OR CIRCUMSTANCE IS HELD6
INVALID, THE INVALIDITY DOES NOT AFFECT OTHER PROVISIONS OR7
APPLICATIONS OF THIS SECTION OR THIS CODE THAT CAN BE GIVEN EFFECT8
WITHOUT THE INVALID PROVISION OR APPLICATION , AND TO THIS END THE9
PROVISIONS OF THIS SECTION ARE DECLARED TO BE SEVERABLE .10
SECTION 2. Act subject to petition - effective date. This act11
takes effect November 7, 2025; except that, if a referendum petition is12
filed pursuant to section 1 (3) of article V of the state constitution against13
this act or an item, section, or part of this act within the ninety-day period14
after final adjournment of the general assembly, then the act, item,15
section, or part will not take effect unless approved by the people at the16
general election to be held in November 2026 and, in such case, will take17
effect on the date of the official declaration of the vote thereon by the18
governor.19
HB25-1282
-11-