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HB 25-1282

Payment Card Network Practices & Fees

2025 Regular Session Introduced by Shannon Bird and 13 co-sponsors

The bill would limit interchange fee practices by payment card networks, cap charitable donations fees, and allow private lawsuits to enforce rules on merchants, issuers, and netwo

Senate Committee on Judiciary Postpone Indefinitely
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Bill Summary · HB 25-1282

Summary — HB 25-1282: Payment Card Network Practices & Fees

Status: Postponed indefinitely by Senate Committee on Judiciary (April 28, 2025)
Introduced: February 20, 2025 — would have taken effect November 7, 2025 (if enacted and not referred)
Short title in bill: “Swipe Fee Fairness and Consumer Safeguards Act”

Purpose / Intent

The bill sought to limit certain payment card network practices that set or influence interchange (“swipe”) fees and to restrict how transaction data and dispute fees are used. The sponsors framed the measure as protecting Colorado merchants (especially small restaurants) and consumers from high interchange costs and preserving local economic activity.

Key provisions

  • Prohibitions on payment card networks (broadly: the networks that route transactions) from:
    • Fixing or conspiring to fix interchange fees with covered card issuers or with other payment card networks.
    • Establishing or implementing fee schedules the network knows (or reasonably should know) were used by other issuers to determine interchange fees.
    • Requiring merchants that accept cards processed over the network to accept all cards issued by a covered issuer enabled on that network.
    • Distributing, publishing, or otherwise using data from an electronic payment transaction except in narrowly defined circumstances.
    • Charging a fee to a consumer or merchant for a disputed transaction until the dispute is resolved and written notice of the determination is provided.
    • Imposing penalties on merchants for legally setting prices.
  • Fee-formula limits:
    • Prohibits interchange fees calculated as a percentage of the transaction that do not exclude amounts attributable to taxes or gratuities (and bans fee increases intended to circumvent that rule).
  • Special caps for charitable donations:
    • Interchange on charitable contributions capped at 0.2% for debit-card donations and 0.3% for credit-card donations.
  • Enforcement and remedies:
    • Private right of action for injured merchants, consumers, or entities.
    • For non-class actions: defendant liable for the greater of actual damages plus interest or $500 (or 3× actual damages if bad-faith conduct), plus costs and reasonable attorney fees.
    • Certified class actions: plaintiffs may recover actual damages, injunctive relief, and reasonable attorney fees and costs.

Who would be affected

  • Payment card networks and card issuers (subject to prohibitions).
  • Merchants and businesses that accept card payments (including small restaurants and nonprofits).
  • Consumers (particularly donors and cardholders disputing charges).
  • Processors, acquirer banks, and entities that use transaction data.

Fiscal and procedural effects

  • Legislative Council’s fiscal notes (initial and final) project minimal state workload and no direct state revenue impact. The Department of Law’s duties were not expected to materially change.
  • Potential increase in civil filings could increase Judicial Department workload and filing-fee revenue (subject to TABOR).
  • No state appropriation required.
  • Final fiscal note states impacts would not take effect because the bill was postponed indefinitely.

Legislative actions & sponsors

  • House: Passed third reading (March 19, 2025). Reengrossed language and legislative findings included.
  • Senate: Assigned to Judiciary; laid over (4/14/2025); postponed indefinitely (4/28/2025).
  • Primary sponsors: Rep. Max Brooks; Sen. Lindsey Daugherty; Sen. Barbara Kirkmeyer; Rep. William Lindstedt (and multiple cosponsors listed).

Note: This summary reflects the introduced / reengrossed bill text and legislative fiscal analyses. The measure did not advance beyond the Senate Judiciary Committee.

Compiled from official sources — confirm details with the bill’s official record.

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