Fight Over Credit Card ‘Swipe Fees’ Attracts Nearly 200 Lobbyists In Colorado

Colorado lawmakers are fighting over Senate Bill 26‑134 (“Swipe Fee Fairness and Consumer Safeguards Act”), which would bar card networks from charging percentage-based interchange on the sales‑tax portion of card transactions, and that fight has drawn roughly 175–200 lobbyists representing banks, card networks, big‑box retailers, small businesses, unions, and advocacy groups.

What the Colorado bill does

SB 26‑134 targets interchange (“swipe”) fees that card networks and issuers charge merchants, typically around 1.5%–3.5% of the full ticket amount, including sales tax. The bill would prohibit card networks from including sales tax in the base on which those percentage fees are calculated, effectively eliminating swipe fees on the tax portion. A broader fact sheet from supporters also describes limits on fees for tips and charitable contributions and restrictions on certain network fee practices, branding it as “Swipe Fee Fairness and Consumer Safeguards.”

Who is lobbying and why

The issue has become one of the most expensive fights of Colorado’s 2026 session, with 175 lobbyists and firms registered on the bill as of late April, roughly split between supporters and opponents. Supporters include restaurants, breweries, small businesses, independent retailers, and large chains such as Walmart, Target, and Home Depot, all arguing that they should not pay interchange on tax they merely collect for the state. Opponents include banks, credit card companies, credit unions, chambers of commerce, labor unions, and left‑leaning groups like the Bell Policy Center and Towards Justice, many of whom argue that the bill mainly benefits large retailers, could reduce card rewards, and may threaten unionized jobs in the financial sector and retail supply chains.

Scale and stakes for merchants and consumers

Swipe fees have become one of the largest non‑labor expenses for many merchants in Colorado, especially restaurants operating on thin margins. NFIB and the Colorado Restaurant Association estimate that Colorado merchants paid about 2.08 billion dollars in credit card fees overall in 2024, including around 200–217 million dollars in swipe fees on sales taxes alone. Supporters say removing sales tax from the fee base would allow those funds to be redirected to wages, rent, and investment, while critics warn that card issuers may recoup lost fee revenue through higher interest rates, annual fees, or reduced rewards and that smaller merchants could face higher fixed fees.

Legislative status

The bill passed the Colorado Senate on a razor‑thin 18‑17 vote, with five Democrats joining Republicans in opposition, reflecting how divided the issue is even within parties. NFIB and allied business groups hailed the Senate vote and are now pressing the House to pass the measure quickly and send it to the governor. Given the intensity of lobbying and last‑minute lobbyist registrations, both sides appear to be preparing a major push as the bill moves through the House and toward a potential signature or veto.

How this fits national trends

Colorado’s fight parallels a broader national debate over interchange regulation, including federal proposals like the Credit Card Competition Act and other state‑level efforts to limit swipe fees on taxes, tips, or specific sectors such as restaurants. Card networks argue these interventions undermine the economics of open‑loop card systems, while merchant coalitions frame them as necessary to curb market power and fee “taxation” on mandatory state and local taxes. Observers see Colorado as a possible test case for how far states can go in regulating card network practices without triggering legal preemption challenges or major changes in card pricing.