What’s paved with good intentions?
In this case, policy. That’s the core message from the Defense Credit Union Council (DCUC), and they’re not mincing words about Colorado’s SB26-134.
The organization is waving a big red flag in its latest letter, arguing that while the bill might sound great on paper, it could actually end up hurting the people it’s designed to help. Sometimes the cure is worse than the disease.
“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,” Jason Stverak, DCUC’s Chief Advocacy Officer, wrote.
The legislation wants to exclude taxes and gratuities from interchange fees.
According to DCUC’s letter, implementing this change would require massive system overhauls, create confusion at the checkout counter and hit credit unions particularly hard. Unlike mega-banks with deep pockets and diverse revenue streams, credit unions operate on tighter margins. History has shown that these types of policies often benefit big-box retailers while small merchants and everyday consumers get squeezed.
DCUC is also raising an alarm that military families in particular need reliable financial services. When the payment systems they depend on get disrupted, it becomes a readiness issue.
“This testimony is critical because financial stability is directly tied to military readiness,” explained Anthony Hernandez, DCUC president/CEO and a retired Air Force 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 says it’s ready to roll up its sleeves and work with Colorado lawmakers to find solutions that actually protect consumers without breaking the payment infrastructure everyone relies on. The goal, the associations says, should be maintaining a secure, efficient payment system.