Colorado brewers advocate for House Bill 12 82 to reduce credit card processing fees

The House Finance Committee of the Colorado State Legislature convened on March 13, 2025, to discuss House Bill 12 82, aimed at addressing the rising credit card swipe fees impacting small businesses, particularly craft breweries. The meeting featured testimonies from various stakeholders, including brewery owners and representatives from the Colorado Brewers Guild, who highlighted the financial burdens these fees impose on their operations.

The first speaker emphasized that credit card swipe fees have surged over the past decade, with U.S. companies facing some of the highest rates globally—seven times higher than those in Europe. In 2022 alone, credit card processing fees reached approximately $160.7 billion, marking a 17% increase from the previous year. The speaker argued that these fees significantly affect small breweries, which have seen a rise in credit and debit card transactions. They advocated for HB 12 82, which seeks to ban swipe fees on taxes and tips, asserting that this would alleviate financial pressure on small businesses while still allowing credit card companies to profit.

John Winter, president of Lone Tree Brewing Company, shared his brewery's experience, revealing that they paid over $49,000 in credit card fees last year, with a notable portion attributed to tips and charitable donations. He described these fees as one of their highest expenses, further stressing the need for legislative relief.

Katie Nicholson, owner of Old 121 Brew House, echoed these sentiments, detailing her brewery's struggles with processing fees on tips and taxes, which she deemed unfair. She urged the committee to support the bill, emphasizing that such fees increase costs for consumers and diminish the earnings of employees.

Carlin Walsh, representing the Colorado Brewers Guild, noted that his brewery incurred around $45,000 in swipe fees, with significant savings anticipated if the bill passes. He acknowledged his preference for minimal government intervention but recognized the necessity of the bill due to the lack of competition in the credit card processing market.

The committee also heard from Jeff Reeser, representing the Department of Law, who confirmed that the attorney general had reviewed the bill and found no significant litigation risks. He explained that the bill primarily facilitates private agreements between businesses, thus limiting state involvement.

The discussions highlighted the pressing need for reform in credit card processing fees, particularly for small businesses struggling with rising operational costs. The committee's deliberations on HB 12 82 reflect a growing recognition of the challenges faced by local businesses and the potential for legislative action to provide much-needed relief. The meeting concluded with a call for further consideration of the bill, as stakeholders await the committee's decision on the proposed measures.