HB1282 creates the “Swipe Fee Fairness and Consumer Safeguards Act,” a new state law aimed at regulating payment card networks and the fees they help set for credit and debit card transactions. The bill prohibits payment card networks from fixing or coordinating interchange fees, using fee schedules that have been used by other issuers to set interchange rates, charging interchange on the tax or gratuity portion of a transaction, forcing merchants to accept all cards issued by a covered issuer, using transaction data except for limited purposes, charging dispute-related fees before a dispute is resolved, or penalizing merchants for lawful pricing practices. It also limits interchange fees on charitable contributions to 0.2% for debit and 0.3% for credit transactions.
The bill defines a wide set of terms, including payment card network, covered credit card issuer, interchange fee, merchant, issuer, processor, debit card, and electronic payment transaction. It applies to large card issuers, defined by asset size, and is framed as a consumer and merchant protection measure, with legislative findings emphasizing the cost of swipe fees, their effect on prices, and the burden on restaurants and other merchants. The act takes effect November 7, 2025, unless referred to voters through the referendum process.
If enacted, the bill would significantly alter Colorado law governing electronic payment transactions by creating direct statutory limits on card-network fee practices and by giving merchants, consumers, and other injured parties a private right of action. Available remedies include actual damages, a minimum recovery of $500, treble damages for bad-faith conduct, attorney fees, costs, and injunctive relief in class actions. The bill also preserves the attorney general’s existing antitrust authority and includes severability language.
The general sentiment in the legislative record appears mixed to favorable in the House and unfavorable in the Senate Judiciary Committee. The bill passed House Finance 9-3 and the House third reading 43-21, suggesting substantial support among House members, but it was later postponed indefinitely in Senate Judiciary on a 6-0 vote, indicating the measure did not advance in the Senate committee. The bill’s framing suggests strong support from merchant and restaurant interests, while the opposition likely centered on the scope of regulation and the bill’s impact on payment card networks and existing fee structures.
The main points of contention are the bill’s restrictions on interchange fee setting, its treatment of transaction data, and its private enforcement provisions. Supporters appear to argue that the bill would reduce costs for merchants, especially restaurants, and keep more money in Colorado, while critics likely view it as a significant intervention into a national payments system and a potential source of litigation and compliance burdens for card networks and issuers.
HB1282 would add a new section to Colorado law regulating payment card networks and interchange-fee practices, creating enforceable limits on how fees are set and collected in electronic payment transactions. It would affect merchants, consumers, payment card networks, issuers, processors, and acquirer banks, and it would specifically constrain fee treatment for taxes, gratuities, disputed transactions, charitable contributions, and merchant pricing practices. The bill also creates a private right of action with damages, fee-shifting, and class-action remedies, while preserving the attorney general’s antitrust authority.
The bill appears to have had meaningful support in the House, where it advanced through Finance and passed third reading with a comfortable margin, reflecting a generally favorable view among many House members. The legislative findings and sponsor framing suggest the measure was presented as a consumer- and merchant-relief bill, especially for restaurants and small businesses facing high card-processing costs. However, the Senate Judiciary Committee later postponed the bill indefinitely on a unanimous 6-0 vote, indicating that the measure encountered decisive resistance before reaching the Senate floor.
The central controversy is whether Colorado should directly regulate payment card network fee-setting and related practices. Supporters emphasize high interchange fees, the burden on merchants and restaurants, and the claim that the bill would keep more money in-state and reduce costs on sales tax and tips. Opponents likely object to the bill’s broad restrictions on network conduct, its limits on data use and fee schedules, and its private enforcement scheme, which could expose networks to damages and litigation. The bill’s carveouts and definitions, especially the focus on large issuers and charitable contributions, also suggest debate over how narrowly or broadly the law should reach.