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DENVER, CO – The House 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 44-20.
“We are passing this bill to save small businesses and restaurants thousands of dollars that they can use to grow their business, lower costs or increase workers’ wages,” said Speaker Julie McCluskie, D-Dillon. “Credit card companies charge a fee on the sales tax businesses are required to collect, which can cost thousands of dollars per year. This simple bill will help businesses and workers thrive and create opportunities for small retailers to compete and succeed.”
“Swipe fees are lining the pockets of Wall Street banks while Colorado’s small businesses struggle to make ends meet. Every dollar matters for a small business, which is why I’m sponsoring this legislation to eliminate swipe fees on sales tax,” said Majority Leader Monica Duran, D-Wheat Ridge. “Small businesses, many of which are owned by people of color and first-generation Americans, are paying thousands of dollars to the largest credit card companies in swipe fees on sales tax that they are required to collect for state and local governments. That is money that could go to paying rent, making payroll and combating rising costs. Our bill puts an end to swipe fees on sales tax to save Colorado businesses money and help local economies thrive.”
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.