Colorado Governor Vetoes Bills on Credit Card Fees, Pricing

Colorado Governor Jared Polis has vetoed a series of bills passed by the state legislature, including measures targeting credit card fees, algorithmic pricing, and benefits for firefighters. The governor cited concerns over legal risks, operational feasibility, and unintended consequences as reasons for rejecting the legislation.

Polis vetoed a bill that would have prohibited credit card companies from charging interchange fees, often called swipe fees, on the sales tax portion of transactions starting in 2028. In a letter explaining his decision, the governor stated the bill presented significant legal risks to the state's business environment and consumers with limited upside for small businesses. He pointed to a similar law in Illinois, which has faced legal challenges and has not yet been implemented, as a cautionary example. Polis also expressed doubt that the national payments system could be adapted for a Colorado-specific rule.

The bill had been supported by several local restaurants and small business owners, who argued it was unfair to pay fees to collect and deliver tax revenue on behalf of the government. Opponents, including banking and credit card industry groups,...