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DENVER, CO – The House Finance Committee today passed legislation to eliminate “swipe fees” to save small businesses money. SB26-134, sponsored by Speaker Julie McCluskie and Majority Leader Monica Duran, passed by a vote of 7-4.
“This legislation will save small businesses and restaurants thousands of dollars per year,” said Speaker Julie McCluskie, D-Dillon. “Right now, the most profitable credit card companies are charging small businesses a fee on the sales tax these businesses are required to collect. These ‘swipe fees’ add up quickly, costing small businesses tens of thousands of dollars a year while ongoing global instability, rising fuel prices and costly tariffs have created additional pressures. Prohibiting ‘swipe fees’ will protect jobs, boost workers’ incomes and save small businesses money to help build an economy where everyone has a fair shot to thrive.”
“Colorado Democrats are committed to creating a more affordable Colorado, and this bill could save small businesses thousands of dollars on swipe fees,” said Majority Leader Monica Duran, D-Wheat Ridge. “Swipe fees disproportionately hurt small businesses. Our bill would stop credit card companies with $60 billion or more in assets from charging businesses swipe fees and ensure that those savings are dedicated to reducing prices for Coloradans and boosting employee pay. This would support minority-owned small businesses and support entrepreneurs who are finding creative ways to bring in money for their families.”
Currently, credit card companies charge businesses a ‘swipe fee’ for electronic payments and card-based transactions. This fee includes both the transaction total and the sales tax that businesses must collect on behalf of the state and local governments. SB26-134 would prohibit large credit card companies from implementing this fee on the sales tax component of every transaction. The bill applies to credit card companies with assets over $60 billion. Businesses with over 500 employees must use any savings under this bill to reduce prices for customers or increase employee wages or benefits.
Swipe fees can range from 1.5 percent to 3.5 percent of a transaction. In 2024, swipe fees on sales tax cost businesses over $217 million in Colorado. A 2026 Colorado Restaurant Association report found that SB26-134 could save Colorado restaurants over $26,000 a year.