DCUC Raises Concerns with Colorado SB26-134

WASHINGTON, DC – The Defense Credit Union Council (DCUC) has submitted a letter to the Colorado House Finance Committee expressing strong concerns with SB26-134 and its potential impact on consumers, small businesses, and financial institutions across the state. ​

DCUC, which represents more than 200 credit unions serving over 40 million members worldwide, warned that the proposal could disrupt the electronic payments system and create unintended consequences for the very communities it aims to protect. ​

“While well-intentioned, SB26-134 introduces an unworkable framework that would fragment the payments system, increase compliance burdens, and ultimately shift costs back onto consumers and small businesses,” wrote DCUC Chief Advocacy Officer Jason Stverak. 

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. 

“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 encourages 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.