Payment Card Networks' Fees

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0672.01 Richard Sweetman x4333 SENATE BILL 26-134
Senate Committees House Committees
Business, Labor, & Technology
A BILL FOR AN ACT
CONCERNING THE IMPOSITION OF FEES BY PAYMENT CARD NETWORKS. 101
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill states that a payment card network, which is an entity that
routes information and data for electronic payment transactions, whether
directly or indirectly, shall not:
! Establish, charge, or include in a fee schedule an
interchange fee if:
!The interchange fee is or includes a percentage
multiplied by the gross dollar amount of a
transaction conducted with a debit card or credit
SENATE SPONSORSHIP
Lindstedt and Jodeh, Amabile, Roberts, Weissman
HOUSE SPONSORSHIP
Duran and McCluskie, Brooks, Brown, Froelich, Garcia, Nguyen, Smith, Story, Willford,
Woodrow
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
card; and
! The fee does not exclude from the gross dollar
amount of the transaction any amount attributable to
a tax on the transaction; or
! Increase the rate or amount of fees that apply to the nontax
portion of a transaction in an attempt to, or in a manner that
would, circumvent the aforementioned prohibition.
The bill exempts electronic payment transactions involving a debit
card or credit card issued by a person, or agent of a person, that issues a
debit card or credit card to a cardholder (issuer) that:
! Did not, during any point in the previous calendar year,
hold consolidated worldwide banking and nonbanking
assets, including assets of affiliates, other than trust assets
under management, of more than $60 billion; or
! As of February 1, 2026, had contracted to brand the card
with the brand of a financial institution chartered or
authorized to do business in this state that did not, during
any point in the previous calendar year, hold consolidated
worldwide banking and nonbanking assets, including assets
of affiliates, other than trust assets under management, of
more than $60 billion.
An issuer that satisfies either of these exemption descriptions must
identify to a payment card network all of the issuer's debit cards and
credit cards that are used for exempted transactions, and the payment card
network shall not, whether directly or indirectly through an agent,
contract, requirement, condition, penalty, technological specification, or
inducement or otherwise:
! Deny such a card access to transaction processing systems;
or
! Impose any fee increase or penalty on the issuer or on a
financial institution branded on the card for any costs of
upgrades or configurations to payment and processing
systems that may be necessary to comply with the bill with
respect to such cards.
A payment card network is deemed to be in compliance with the
requirements of the bill if the payment card network satisfies certain
conditions.
If a payment card network violates the bill's prohibitions, a
merchant, consumer, or other person that is injured as a result of the
violation may bring a civil action against the payment card network. The
bill sets forth the penalties to be awarded in such an action.
Be it enacted by the General Assembly of the State of Colorado:1
SB26-134-2-
SECTION 1. In Colorado Revised Statutes, add 5-2-215 as1
follows:2
5-2-215. Payment card networks - interchange fees -3
prohibited conduct - exemption - compliance - penalties - definitions.4
(1) Definitions. AS USED IN THIS SECTION, UNLESS THE CONTEXT5
OTHERWISE REQUIRES:6
(a) "A UTHORIZATION" MEANS THE PROCESS THROUGH WHICH A7
MERCHANT REQUESTS APPROVAL FOR AN ELECTRONIC PAYMENT8
TRANSACTION FROM AN ISSUER.9
(b) "B AD FAITH CONDUCT " MEANS FRAUDULENT , WILLFUL ,10
KNOWING, OR INTENTIONAL CONDUCT THAT CAUSES INJURY.11
(c) "CARDHOLDER" MEANS A PERSON TO WHICH A DEBIT CARD OR12
CREDIT CARD IS ISSUED BY AN ISSUER OR AN ISSUER'S AGENT.13
(d) "CLEARANCE" MEANS THE PROCESS OF:14
(I) TRANSMITTING FINAL TRANSACTION DATA FROM A MERCHANT15
TO AN ISSUER FOR POSTING TO A CARDHOLDER'S ACCOUNT; AND16
(II) CALCULATING FEES AND CHARGES, INCLUDING INTERCHANGE17
FEES, THAT APPLY TO AN ISSUER AND A MERCHANT.18
(e) "DEBIT CARD" HAS THE MEANING SET FORTH IN 15 U.S.C. SEC.19
1693o-2 (c)(2).20
(f) "E LECTRONIC PAYMENT TRANSACTION " OR "TRANSACTION"21
MEANS A TRANSACTION IN WHICH A PERSON USES A DEBIT CARD, A CREDIT22
CARD, OR ANOTHER PAYMENT CODE OR DEVICE ISSUED OR APPROVED FOR23
USE THROUGH A PAYMENT CARD NETWORK TO DEBIT A CARDHOLDER 'S24
ACCOUNT OR LINE OF CREDIT.25
(g) "EXEMPTED TRANSACTION" MEANS AN ELECTRONIC PAYMENT26
TRANSACTION INVOLVING A DEBIT CARD OR CREDIT CARD ISSUED BY AN27
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ISSUER THAT:1
(I) DID NOT, DURING ANY POINT IN THE PREVIOUS CALENDAR YEAR,2
HOLD CONSOLIDATED WORLDWIDE BANKING AND NONBANKING ASSETS ,3
INCLUDING ASSETS OF AFFILIATES , OTHER THAN TRUST ASSETS UNDER4
MANAGEMENT, OF MORE THAN SIXTY BILLION DOLLARS; OR5
(II) AS OF FEBRUARY 1, 2026, HAD CONTRACTED TO BRAND THE6
CARD WITH THE BRAND OF A FINANCIAL INSTITUTION CHARTERED OR7
AUTHORIZED TO DO BUSINESS IN THIS STATE THAT DID NOT, DURING ANY8
POINT IN THE PREVIOUS CALENDAR YEAR , HOLD CONSOLIDATED9
WORLDWIDE BANKING AND NONBANKING ASSETS, INCLUDING ASSETS OF10
AFFILIATES, OTHER THAN TRUST ASSETS UNDER MANAGEMENT, OF MORE11
THAN SIXTY BILLION DOLLARS.12
(h) "F EE SCHEDULE" MEANS A SCHEDULE , LIST, TABLE, CHART,13
AGREEMENT, COMMUNICATION, OR OTHER DOCUMENT THAT:14
(I) SETS FORTH AN AMOUNT OR A FORMULA FOR DETERMINING ONE15
OR MORE FEES; AND16
(II) MAY OR MAY NOT BE MADE PUBLICLY AVAILABLE.17
(i) "INTERCHANGE FEE" MEANS A FEE ESTABLISHED, CHARGED, OR18
RECEIVED BY A PAYMENT CARD NETWORK FOR THE PURPOSE OF19
COMPENSATING AN ISSUER FOR ITS INVOLVEMENT IN AN ELECTRONIC20
PAYMENT TRANSACTION.21
(j) "ISSUER" MEANS:22
(I) A PERSON THAT ISSUES A DEBIT CARD OR CREDIT CARD TO A23
CARDHOLDER; OR24
(II) T HE AGENT OF A PERSON THAT ISSUES A DEBIT CARD OR25
CREDIT CARD TO A CARDHOLDER.26
(k) "MERCHANT" MEANS A PERSON THAT ACCEPTS ELECTRONIC27
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PAYMENT TRANSACTIONS AND COLLECTS AND REMITS A TAX.1
(l) "PAYMENT CARD NETWORK" MEANS AN ENTITY THAT:2
(I) DIRECTLY OR THROUGH LICENSED MEMBERS, PROCESSORS, OR3
AGENTS, PROVIDES THE PROPRIETARY SERVICES, INFRASTRUCTURE, AND4
SOFTWARE TO ROUTE INFORMATION AND DATA FOR THE PURPOSE OF5
CONDUCTING ELECTRONIC PAYMENT TRANSACTION AUTHORIZATION ,6
CLEARANCE, AND SETTLEMENT; AND7
(II) A MERCHANT USES IN ORDER TO ACCEPT A DEBIT CARD , A8
CREDIT CARD, OR OTHER DEVICE AS PART OF AN ELECTRONIC PAYMENT9
TRANSACTION.10
(m) "PROCESSOR" MEANS AN ENTITY THAT FACILITATES, SERVICES,11
PROCESSES, OR MANAGES DEBIT CARD OR CREDIT CARD AUTHORIZATION,12
BILLING, TRANSFER , PAYMENT PROCEDURES , OR SETTLEMENT WITH13
RESPECT TO AN ELECTRONIC PAYMENT TRANSACTION.14
(n) "SETTLEMENT" MEANS THE PROCESS OF:15
(I) T RANSMITTING SALES INFORMATION TO AN ISSUER FOR16
COLLECTION AND REIMBURSEMENT OF FUNDS TO A MERCHANT; AND17
(II) CALCULATING AND REPORTING A NET TRANSACTION AMOUNT18
TO AN ISSUER AND A MERCHANT FOR AN ELECTRONIC PAYMENT19
TRANSACTION THAT IS CLEARED.20
(o) "TAX" MEANS ANY SALES, USE, OCCUPATION, OR EXCISE TAX21
IMPOSED BY THE STATE OR A UNIT OF LOCAL GOVERNMENT IN THE STATE.22
(2) Prohibition on certain payment card network practices.23
EXCEPT AS DESCRIBED ELSEWHERE IN THIS SECTION , A PAYMENT CARD24
NETWORK, WHETHER DIRECTLY OR INDIRECTLY THROUGH AN AGENT ,25
CONTRACT, REQUIREMENT , CONDITION , PENALTY , TECHNOLOGICAL26
SPECIFICATION, OR INDUCEMENT OR OTHERWISE, SHALL NOT:27
SB26-134-5-
(a) E STABLISH, CHARGE , OR INCLUDE IN A FEE SCHEDULE AN1
INTERCHANGE FEE IF:2
(I) T HE INTERCHANGE FEE IS OR INCLUDES A PERCENTAGE3
MULTIPLIED BY THE GROSS DOLLAR AMOUNT OF A TRANSACTION4
CONDUCTED WITH A DEBIT CARD OR CREDIT CARD; AND5
(II) T HE FEE DOES NOT EXCLUDE FROM THE GROSS DOLLAR6
AMOUNT OF THE TRANSACTION ANY AMOUNT ATTRIBUTABLE TO A TAX ON7
THE TRANSACTION; OR8
(b) I NCREASE THE RATE OR AMOUNT OF FEES THAT APPLY TO A9
PORTION OF A TRANSACTION OTHER THAN THE PORTION DESCRIBED IN10
SUBSECTION (2)(a)(II) OF THIS SECTION IN AN ATTEMPT TO , O R I N A11
MANNER THAT WOULD , CIRCUMVENT THE PROHIBITION SET FORTH IN12
SUBSECTION (2)(a) OF THIS SECTION.13
(3) Exemption.14
(a) SUBSECTION (2)(a) OF THIS SECTION DOES NOT APPLY TO AN15
INTERCHANGE FEE THAT A PAYMENT CARD NETWORK ESTABLISHES ,16
CHARGES, OR INCLUDES IN A FEE SCHEDULE SOLELY FOR USE IN EXEMPTED17
TRANSACTIONS.18
(b) AN ISSUER THAT SATISFIES THE DESCRIPTION IN SUBSECTION19
(1)(g)(I) OR (1)(g)(II) OF THIS SECTION SHALL IDENTIFY TO A PAYMENT20
CARD NETWORK ALL OF THE ISSUER 'S DEBIT CARDS AND CREDIT CARDS21
THAT ARE USED FOR EXEMPTED TRANSACTIONS, AND THE PAYMENT CARD22
NETWORK SHALL NOT, WHETHER DIRECTLY OR INDIRECTLY THROUGH AN23
AGENT, CONTRACT, REQUIREMENT, CONDITION, PENALTY, TECHNOLOGICAL24
SPECIFICATION, OR INDUCEMENT OR OTHERWISE:25
(I) D ENY SUCH A CARD ACCESS TO TRANSACTION PROCESSING26
SYSTEMS; OR27
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(II) IMPOSE ANY FEE INCREASE OR PENALTY ON THE ISSUER OR ON1
A FINANCIAL INSTITUTION BRANDED ON THE CARD FOR ANY COSTS OF2
UPGRADES OR CONFIGURATIONS TO PAYMENT AND PROCESSING SYSTEMS3
THAT MAY BE NECESSARY TO COMPLY WITH THIS SECTION WITH RESPECT4
TO SUCH CARDS.5
(4) Compliance. A PAYMENT CARD NETWORK IS DEEMED TO BE IN6
COMPLIANCE WITH SUBSECTION (2)(a) OF THIS SECTION IF THE PAYMENT7
CARD NETWORK ENSURES ANY OF THE FOLLOWING:8
(a) A T THE TIME OF SETTLEMENT OF AN ELECTRONIC PAYMENT9
TRANSACTION, THAT THE CALCULATION OF ANY INTERCHANGE FEE10
EXCLUDES THE AMOUNT ATTRIBUTABLE TO ANY TAX IMPOSED ON THE11
TRANSACTION;12
(b) WITHIN THIRTY DAYS AFTER THE DATE OF SETTLEMENT OF AN13
ELECTRONIC PAYMENT TRANSACTION, THAT FOR ANY INTERCHANGE FEE14
CHARGED ON THE TRANSACTION, A PORTION OF THE INTERCHANGE FEE IS15
REBATED TO THE MERCHANT 'S ACCOUNT IN AN AMOUNT EQUAL TO THE16
REDUCTION IN THE INTERCHANGE FEE THAT WOULD HAVE OCCURRED HAD17
THE CALCULATION OF THE INTERCHANGE FEE AT THE TIME OF SETTLEMENT18
EXCLUDED THE AMOUNT ATTRIBUTABLE TO ANY TAX IMPOSED ON THE19
TRANSACTION;20
(c) IF A MERCHANT IS UNABLE TO CAPTURE AND TRANSMIT TAX21
INFORMATION RELEVANT TO THE ELECTRONIC PAYMENT TRANSACTION AT22
THE TIME OF SETTLEMENT , THAT THE MERCHANT MAY , WITHIN ONE23
HUNDRED EIGHTY DAYS AFTER THE DATE OF THE TRANSACTION , SUBMIT24
DOCUMENTATION IDENTIFYING ANY TAX IMPOSED ON THE TRANSACTION25
AND THAT , WITHIN THIRTY DAYS AFTER THE SUBMISSION OF SUCH26
DOCUMENTATION, THE MERCHANT 'S ACCOUNT SHALL BE CREDITED AN27
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AMOUNT EQUAL TO THE REDUCTION IN THE INTERCHANGE FEE THAT1
WOULD HAVE OCCURRED HAD THE CALCULATION OF THE INTERCHANGE2
FEE AT THE TIME OF SETTLEMENT EXCLUDED THE AMOUNT ATTRIBUTABLE3
TO ANY TAX IMPOSED ON THE TRANSACTION;4
(d) T HAT NO INTERCHANGE FEE ESTABLISHED , CHARGED , OR5
INCLUDED IN A FEE SCHEDULE BY THE PAYMENT CARD NETWORK IS OR6
INCLUDES A PERCENTAGE MULTIPLIED BY THE GROSS DOLLAR AMOUNT OF7
A TRANSACTION UNLESS THE AMOUNT OF ANY TAX IS EXCLUDED FROM8
SUCH GROSS DOLLAR AMOUNT; OR9
(e) T HAT NO INTERCHANGE FEES ESTABLISHED , CHARGED , OR10
INCLUDED IN A FEE SCHEDULE BY THE PAYMENT CARD NETWORK ARE11
DEDUCTED BEFORE SETTLEMENT FROM THE TRANSACTION AMOUNT OF12
ANY ELECTRONIC PAYMENT TRANSACTION AND THAT SUCH INTERCHANGE13
FEES ARE INSTEAD CUMULATIVELY CHARGED ON A REGULAR BILLING14
CYCLE AFTER TRANSACTIONS HAVE SETTLED AND AFTER ALL TAX15
AMOUNTS HAVE BEEN IDENTIFIED AND EXCLUDED FROM TRANSACTION16
AMOUNTS IN THE CALCULATION OF INTERCHANGE FEES.17
(5) Penalties.18
(a) IF A PAYMENT CARD NETWORK VIOLATES SUBSECTION (2) OR19
(3) OF THIS SECTION, A MERCHANT, CONSUMER, OR OTHER PERSON THAT20
IS INJURED AS A RESULT OF THE VIOLATION MAY BRING A CIVIL ACTION21
AGAINST THE PAYMENT CARD NETWORK . EXCEPT IN A CERTIFIED CLASS22
ACTION, AND NOTWITHSTANDING ANY OTHER LAW , A PAYMENT CARD23
NETWORK THAT IS FOUND IN A CIVIL ACTION TO HAVE VIOLATED THIS24
SECTION IS LIABLE IN AN AMOUNT EQUAL TO THE SUM OF:25
(I) THE GREATER OF:26
(A) T HE AMOUNT OF ACTUAL DAMAGES SUSTAINED OR , IF IT IS27
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ESTABLISHED BY CLEAR AND CONVINCING EVIDENCE THAT THE PAYMENT1
CARD NETWORK ENGAGED IN BAD FAITH CONDUCT , THREE TIMES THE2
AMOUNT OF ACTUAL DAMAGES . ACTUAL DAMAGES INCLUDES3
PREJUDGMENT INTEREST OF EITHER EIGHT PERCENT PER YEAR OR AT THE4
RATE PROVIDED IN SECTION 13-21-101, WHICHEVER IS GREATER , FROM5
THE DATE THE CLAIM ACCRUED.6
(B) FIVE HUNDRED DOLLARS; AND7
(II) I N THE CASE OF ANY SUCCESSFUL ACTION TO ENFORCE A8
LIABILITY ESTABLISHED IN SUBSECTION (5)(a)(I) OF THIS SECTION , THE9
COSTS OF THE ACTION TOGETHER WITH REASONABLE ATTORNEY FEES AS10
DETERMINED BY THE COURT.11
(b) I N A CASE CERTIFIED AS A CLASS ACTION , A SUCCESSFUL12
PLAINTIFF MAY RECOVER ACTUAL DAMAGES, AS DESCRIBED IN SUBSECTION13
(5)(a)(I)(A) OF THIS SECTION; INJUNCTIVE RELIEF ALLOWED BY LAW; AND14
REASONABLE ATTORNEY FEES AND COSTS.15
(c) A PERSON THAT BRINGS AN ACTION UNDER THIS SECTION THAT16
IS FOUND BY THE COURT TO BE FRIVOLOUS, GROUNDLESS, AND BROUGHT17
IN BAD FAITH OR FOR THE PURPOSE OF HARASSMENT IS LIABLE TO THE18
DEFENDANT FOR THE COSTS OF THE ACTION TOGETHER WITH REASONABLE19
ATTORNEY FEES AS DETERMINED BY THE COURT.20
(6) Antitrust authority. NOTHING IN THIS SECTION LIMITS OR21
OTHERWISE AFFECTS THE ATTORNEY GENERAL'S AUTHORITY TO ENFORCE22
THE "COLORADO STATE ANTITRUST ACT OF 2023", ARTICLE 4 OF TITLE 6.23
SECTION 2. Act subject to petition - effective date -24
applicability. (1) This act takes effect at 12:01 a.m. on the day following25
the expiration of the ninety-day period after final adjournment of the26
general assembly (August 12, 2026, if adjournment sine die is on May 13,27
SB26-134-9-
2026); except that, if a referendum petition is filed pursuant to section 11
(3) of article V of the state constitution against this act or an item, section,2
or part of this act within such period, then the act, item, section, or part3
will not take effect unless approved by the people at the general election4
to be held in November 2026 and, in such case, will take effect on the5
date of the official declaration of the vote thereon by the governor.6
(2) This act applies to conduct occurring on or after the applicable7
effective date of this act.8
SB26-134-10-