The Daily Sun-Up Swipe fees back before Colorado lawmakers
Mar 17, 2026
Tamara Chuang, a Colorado Sun business reporter covering state economic and business policy, explains a bill aiming to remove sales tax from card swipe fees. She breaks down what interchange fees are. She outlines who pays and who benefits, why banks defend the charges, testimony from retailers and banks, and the bill’s path through the legislature.
AI Snips
Chapters
Transcript
Episode notes
Interchange Fees Include Sales Tax And Add Up
- Colorado merchants pay substantial interchange fees on entire transactions including sales tax.
- In 2024 Colorado businesses paid about $2.08 billion in card fees, with under $217 million attributed to sales tax portion merchants still absorb.
Banks Say Fees Pay For Fraud Protection And Rewards
- Card issuers argue interchange funds fraud prevention and consumer rewards.
- Airlines and banks warned lost fee revenue supports fraud protection and credit-card rewards programs consumers value.
Legislation Excludes Smaller Banks And Credit Unions
- The bill exempts smaller institutions to limit collateral impact.
- Financial institutions with under $60 billion in assets are excluded from the proposed change, addressing some credit union and small-bank concerns.