DENVER—The Defense Credit Union Council is urging Colorado House lawmakers to reconsider SB26-134, warning the swipe-fee bill that cleared the Senate Friday could disrupt the payments system and create new costs for consumers, small businesses and credit unions.
In a letter to the Colorado House Finance Committee, DCUC Chief Advocacy Officer Jason Stverak said the proposal’s bar on interchange fees tied to taxes and gratuities would create an “unworkable framework” requiring major system redesigns and adding compliance burdens.
DCUC’s letter warned that excluding taxes and gratuities from interchange fees would require significant system redesigns, create transaction uncertainty, and disproportionately impact credit unions that lack the scale and revenue diversification of larger financial institutions. Stverak noted that similar policies tend to benefit large retailers while placing added strain on smaller merchants and consumers.
"Beyond market impacts, the unique risks to military financial readiness. Reliable access to secure and predictable payment systems is essential for servicemembers and their families, especially for those navigating deployments, relocations, and financial stress. DCUC stressed given many military households already face tight financial margins, disruptions to financial services could have broader implications for readiness, resilience, and retention," Stverak said.
“This testimony is critical because financial stability is directly tied to military readiness,” said Anthony Hernandez, DCUC president/CEO, ret. USAF colonel. “Policies that unintentionally strain the institutions serving military communities don’t just affect the marketplace, they impact force readiness, family stability, and long-term retention across the armed forces.”
DCUC encouraged lawmakers to reconsider the legislation and expressed its willingness to work collaboratively on solutions that protect consumers while preserving a secure, efficient, and equitable payments system.