Governor vetoes Colorado interchange bill

Colorado’s “Credit Card Chaos” bill won’t be signed into law. Gov. Jared Polis vetoed the bill Wednesday, preventing the legislation’s significant operational challenges and unintended consequences for consumers, small businesses, and financial institutions from taking effect across the state.

Similar to the Illinois Interchange Fee Prohibition Act, it would have prohibited collection of interchange on the sales tax portion of a card transaction, creating confusion and added costs at checkout while increasing compliance burdens for credit unions and small businesses.

“A prohibition on interchange fees shifts the payments system away from consumers and toward retail giants who stand to reap the benefits,” said Scott Simpson, president/CEO of America’s Credit Unions. “America’s Credit Unions applauds Governor Polis for taking a principled stand against this costly and chaotic policy. With ongoing litigation and increasing federal preemption, this would have mired Colorado in years of legal uncertainty and operational chaos while other states moved forward to increase the safety and effectiveness of the payment system. While we are grateful for this result, our organization remains vigilant and active in combatting any attempt to upend the national payments system.”

Credit unions are applauding the governor’s veto. GoWest Credit Union Association and Colorado’s credit unions played a critical role throughout the legislative process, engaging lawmakers and educating stakeholders about the real-world impacts the proposal would have had on members, businesses, and the broader financial ecosystem.

“This veto protects Colorado consumers from unnecessary disruption and preserves a secure, efficient payments system,” said Troy Stang, president/CEO of GoWest Credit Union Association. “As financial partners to more than 2.8 million Coloradans, credit unions support policies that lower costs and improve financial access for families and small businesses. We greatly appreciate Governor Polis’ significant investment of time and attention to fully understand the perspectives of all involved in this system and ultimately act in a way that benefits all Coloradans, not just the world’s biggest retailers.”

Credit unions from across the state testified in committee hearings, signed letters, activated grassroots advocacy campaigns, met directly with legislators, participated in media outreach, engaged community partners, and mobilized employees and members to ensure policymakers understood the operational and consumer impacts of the legislation. America’s Credit Unions supported and coordinated with GoWest on unified advocacy efforts.  

“We are incredibly grateful to the credit unions, advocates, and partners such as America’s Credit Unions that stepped up throughout this process,” said Stang. “This effort demonstrated the strength of Colorado’s credit union movement and the importance of coordinated, on-the-ground advocacy. Our industry showed up with facts, member stories, and a shared commitment to protecting consumers and preserving affordable financial services.”

Throughout the session, credit unions emphasized that while frustrations with large payment networks and rising costs are real, this legislation would have placed community-based financial institutions and Colorado consumers in the middle of a complicated payments dispute without solving the underlying issues.