DENVER—Colorado’s swipe-fee legislation is now headed to the House after clearing the Senate a second time Friday, resolving earlier uncertainty tied to a motion to reconsider.
As previously reported by CUToday.info, SB26-134 initially passed the chamber on a narrow vote, prompting a formal motion to reconsider that briefly cast doubt on its path forward. Lawmakers ultimately took up the measure again and approved it a second time, allowing the bill to advance.
The Defense Credit Union Council responded, stating it is “deeply disappointed” by the passage of SB26-134.
“As we made clear in our recent letters to Colorado lawmakers and the Governor's office this week, even policies that appear narrowly targeted, such as exempting interchange on sales taxes, require sweeping, network-level changes that are not operationally feasible without significant disruption, Stverak said. “Payment systems are not designed to isolate and treat portions of a transaction differently in real time. Forcing that outcome introduces complexity, cost, and risk across the entire ecosystem.
While the practical impact of this legislation, among CUs, may fall directly on a single credit union operating in Colorado—Navy FCU—Stverak said that is a “dangerously narrow” way to assess the policy.
“The precedent it sets will undermine the integrity of the broader payments system, inviting a patchwork of state-level mandates that threaten consistency, security, and reliability nationwide,” he stated. “We have already seen how similar misguided efforts, such as in Illinois, have triggered litigation, regulatory conflict, and market uncertainty. Colorado is now on the same path, with the potential to create confusion for consumers, merchants, and financial institutions alike.”
Equally concerning, Stverak added, “There is no guarantee nor credible evidence, that any purported savings will be passed on to consumers. Instead, the more likely outcome is reduced fraud protections, diminished card benefits, and higher costs shifted onto everyday Americans, including servicemembers and veterans who rely on credit unions for safe, affordable financial services.”
Stverak said DCUC is urging the Colorado House to reject this bill.
“And if it reaches his desk, we call on the governor to veto this legislation. Policymakers should not advance proposals that risk destabilizing the payments system in pursuit of uncertain and unproven benefits,” Stverak said.