Senate Postpones Swipe Fee Reform Bill, Promises Continued Advocacy for Small Businesses
DENVER — Lawmakers are delaying proposed legislation aimed at curbing swipe fees levied by credit card companies on taxes and tips. The decision to postpone House Bill 1282, sponsored by a bipartisan coalition including Reps. William Lindstedt and Max Brooks, as well as Sens. Barbara Kirkmeyer and Lindsey Daugherty, aims to provide more time for direct stakeholder communication.
Swipe fees, which can range from 2% to 4% of a transaction, cover various costs including fraud prevention and rewards programs. Despite passage through the House Finance Committee and the chamber floor, concerns persist about the potential legal challenges posed by large federal banks, prompting the bill’s delay until the next legislative session.
Critics, including some Democrats, assert that the bill could inadvertently harm small businesses and local financial institutions by shifting consumer choice towards larger banks. Jennifer Wagner, representing GoWest Credit Union, emphasized that the unintended consequences could worsen the already precarious situation for independent banks.
Sponsors remain committed to addressing these predatory fees, which proponents argue unfairly burden small businesses and nonprofits. Daugherty highlighted the urgent need for reform, stating, “Every day, small businesses are getting nickel and dimed by a system they have no control over.” Kirkmeyer echoed this sentiment, stressing that charitable organizations also suffer when credit card fees siphon away much-needed donations.
While the bill is shelved for now, both Daugherty and Kirkmeyer affirmed their dedication to continuing the fight for transparency and fairness in the payment system. "This is not the end of our conversation; it’s just the beginning,” Kirkmeyer stated, reflecting a resolve to seek meaningful reform for Colorado’s small businesses and community organizations in future sessions.
Source
Photo credit denvergazette.com
