DENVER (3/6/15)--Legislation in Colorado that would have prohibited collection of interchange fees on state and local taxes was halted during a committee hearing Wednesday.
House Bill 15-1154 first put forth the prohibition of collecting credit-card transaction fees on taxes paid by Colorado businesses. After opposition from credit unions, banks and card-processing companies, the legislation was downgraded to a study on limiting interchange fees.
Credit unions and other financial institutions would have faced increased burdens and expense to develop systems to distinguish eligible and ineligible amounts for fee collection.
Also, financial institutions pointed out that even the study was limited to the fees' effect on businesses and not how fees are used to cover card costs such as data breach and fraud protection. (See related story: CUNA files amicus brief in Florida interchange case.)
Scott Earl, president/CEO of the Mountain West Credit Union Association, testified in front of the House Finance Committee.
"It appears almost to be a direct attack to credit unions' statement and missions," said Scott Earl, president/CEO, Mountain West Credit Union Association, in his testimony (Denver Business Journal March 5). "The study is shamelessly biased toward the merchants."
The study version was voted down by the House Finance Committee by a 9-2 vote.