Colorado Bill Restricts Payment Card Network Fees

Detected March 17th, 2026

Summary

Colorado's SB26-134 proposes to restrict payment card networks from establishing or increasing fees based on the gross dollar amount of a transaction that includes taxes. The bill exempts smaller issuers and allows injured parties to bring civil actions against non-compliant networks.

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What changed

Colorado Senate Bill 26-134, introduced for the 2026 Regular Session, aims to regulate fees imposed by payment card networks. Specifically, it prohibits these networks from establishing or including interchange fees that are a percentage of the gross transaction amount if that amount includes taxes. The bill also prevents networks from increasing fees on the non-tax portion of transactions to circumvent this prohibition. Exemptions are provided for electronic payment transactions involving debit or credit cards issued by entities with less than $60 billion in consolidated worldwide banking and nonbanking assets, or those that had contracted to brand with such an institution by February 1, 2026.

Regulated entities, particularly payment card networks and financial institutions, need to review their fee structures and card branding contracts to ensure compliance with the new provisions should the bill become law. The bill allows merchants, consumers, or other injured parties to initiate civil actions against payment card networks that violate these prohibitions, with penalties to be awarded as set forth in the bill. The effective date is not specified, but the bill is from the 2026 session, implying potential enactment in 2026.

What to do next

Review bill text for specific definitions and exemptions related to payment card networks and financial institutions.
Assess current fee structures for compliance with the prohibition on taxing the gross transaction amount.
Identify and document any cards or issuers that qualify for the exemption based on asset thresholds or branding contracts.

Penalties

Civil action by injured parties with penalties to be awarded as set forth in the bill.

Source document (simplified)

SB26-134

Payment Card Networks' Fees

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | Financial Services & Commerce |
Concerning the imposition of fees by payment card networks.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

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 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.

(Note: This summary applies to this bill as introduced.)