The veto concerns state-level restrictions on interchange fees charged by card networks and financial institutions, directly implicating card scheme pricing and network governance.
The interchange fee restrictions would affect acquiring costs and merchant payment processing, making acquiring a relevant secondary consideration despite the primary focus on network-level pricing.
Specialism
The update concerns a vetoed bill that would have restricted interchange fees charged by payment card networks and financial institutions, directly addressing surcharging and fee regulation in payment systems.
Low confidence — requires human review. While the veto involves payment system regulation, it does not establish binding regulatory requirements; the secondary tag reflects the competitive/market structure implications of interchange fee restrictions.
2026-06-04 13:00:51·pdonofrio@vixio.com
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Polis pointed to a court decision striking down a similar law in Illinois and to actions by federal regulators to defend federal preemption.
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TITLE: Colorado Governor Vetoes Bill Restricting Interchange Fees on Sales Taxes
BODY:
On June 3, 2026, Colorado Governor Jared Polis vetoed legislation that would have prohibited payment card networks and financial institutions with more than $60 billion in assets from charging interchange fees on sales taxes. The Colorado General Assembly had passed the bill the previous month.
Polis cited significant legal and operational concerns in his veto message. He referenced a federal court decision earlier that week that largely struck down similar legislation in Illinois, as well as actions by the Comptroller of the Currency and National Credit Union Administration defending the preemption of federal law over state laws. Polis stated that even if the bill survived legal scrutiny, it would be "questionable whether this bill is fully implementable or operationally feasible," noting that it would create a Colorado-specific carve-out to the national and global integrated payments system with unclear implementation pathways.
The American Bankers Association (ABA) welcomed the veto. ABA President and Chief Executive Rob Nichols said the governor's action spared Colorado businesses and consumers "from the payment chaos it would have unleashed — while also sparing the state from a costly and uphill legal battle." Nichols added that the veto, combined with the federal court ruling in Illinois, should discourage other states from pursuing similar legislation. The ABA expressed appreciation to the Colorado Bankers Association and other local stakeholders for their efforts to demonstrate the bill's potential harms to Colorado residents.