Mar25

Commercial Services Council; Session One

This session connects commercial lending and business service leaders to discuss treasury services, business lending programs, and strategies to strengthen relationships with small business and commercial clients.
Mar26

HR & Trainers Council; Session One

The Council’s open format brings together HR and training professionals to share insights, resources, and support while preparing for future challenges in the Credit Union Movement.
Mar27

Marketers Council; Session One

The Council, open to marketing and outreach professionals, offers member-driven presentations and roundtable discussions to support credit union success.
Apr1

Risk Management Council; Session One

By connecting peers in these areas, this council fosters communication and support that helps the industry identify and reduce the many areas of risk that credit unions face daily.
Home » On The Go »

Colorado Credit Unions and Firefighters Sound Alarm Over HB25-1282

Posted by on March 21, 2025

The Colorado House of Representatives passed HB25-1282 – a bill that would have devastating consequences for Colorado’s charities, tipped workers, small businesses, and credit unions if signed into law.

FOR IMMEDIATE RELEASE 

Denver, CO – March 19, 2025 – Today, the Colorado House of Representatives passed HB25-1282 – a bill that would have devastating consequences for Colorado’s charities, tipped workers, small businesses, and credit unions if signed into law. The bill now advances to the Senate Finance Committee for consideration.  

“Colorado lawmakers seem to think they’re sticking it to credit card companies and standing up for the little guy here, but it’s actually the opposite,” said Jennifer Wagner, Executive Vice President of Colorado’s credit union association. “The massive cost of this bill will fall squarely on Colorado’s consumers, small businesses and local credit unions – and have severe consequences for everyone from charities to tipped workers.” 

HB25-1282 is part of a national lobbying campaign led by Home Depot, Walmart, Target, and other large corporate mega-stores. These bills are a priority for large corporate retailers as they would allow them to pocket hundreds of millions of dollars with no savings passed on to consumers. 

The bill seeks to exempt certain parts of credit card transactions – like sales taxes and tips – from interchange, which are processing costs businesses pay in exchange for the services, including all fraud reimbursement, provided by credit card issuers like credit unions and local banks. This means that if HB25-1282 is enacted, credit card issuers would not be able to process payments for taxes, tips, and many charitable contributions in the state of Colorado.  

“This bill is a disaster for working families,” said Kevin Reichenbach, President of the Colorado Professional Firefighters union. “If this becomes law, issuers could stop offering or stop processing Coloradans’ credit cards. Colorado workers who depend on tips won’t be able to receive tips on credit card transactions. Colorado charities won’t be able to take donations via credit card. 

“This bill would take away crucial funds used to support firefighters and our families from donations through our foundation. It would mean financial chaos for every working family in our state, which is why our union is opposed to this dangerous bill.” 

No other state in the country and no other country in the world processes credit and debit card transactions this way. Similar bills have been introduced and rejected in 29 other states. Illinois is the only state in the Union to pass this policy into law, and the Illinois law has since been suspended by the courts as a result of ongoing litigation. 

If passed, this bill would upend the way credit and debit card payments work in the state of Colorado. Consequences of HB25-1282 being signed into law could include the following:  

  • Two Payments Per Transaction: When paying with a credit card, Colorado consumers would have to pay for taxes and tips separately, using cash. 
  • Charities: Colorado charities would no longer be able to accept donations via credit card. 
  • Tipped Workers: Colorado workers who depend on tipped wages would no longer be able to receive tips through credit card transactions, costing them a massive portion of their income. 
  • Market Exit: Card issuers, especially those based out of state, will simply stop offering credit cards to Colorado residents rather than incur major new compliance costs and risk $1,000 per transaction fines for what amounts to a few cents per transaction. 
  • Tourism: Colorado’s travel and tourism industries will suffer as credit cards that work in every other state will not work in Colorado.
  • Reduction in Rewards: Credit card rewards may be reduced or eliminated for Colorado customers, as Interchange directly funds customer rewards (cash back, miles, points) for credit card transactions.
  • Increased Fees: Fees and interest on Colorado customers may increase to offset interchange loss. Unlike Interchange, which is paid directly by business, these new costs could fall on consumers.  

For additional information, please visit GuardYourCard.com/Colorado 

# # # 

Contact:
Madlynn Schreibvogel, Vice President, Public Relations
303.513.3765
[email protected]

Posted in In The News, Press Releases.