Opinion: Credit Card Competition Act and SB 26-134 Could Deepen Inequality in Colorado

Colorado families are already navigating one of the most difficult affordability environments in recent memory. The cost of housing continues to rise. Groceries, child care, gas, and everyday necessities remain far too expensive, all while many families are still trying to recover from years of economic instability and uncertainty.

For Black families and other historically underserved communities, these challenges are even greater. Generational wealth gaps, barriers to homeownership, lower wages, and limited access to financial resources mean that many families have less room for error and fewer options when unexpected expenses arise.

That is why we are concerned about the federally proposed Credit Card Competition Act and Colorado Senate Bill 26-134.

Supporters of the legislation argue that it will create more competition and lower costs. But too often, policies that sound good on paper fail to account for how they will affect the people already living on the margins. These bills risk doing exactly that.

The federal Credit Card Competition Act would require large financial institutions to route credit card transactions through multiple processing networks. Though it appears technical on the surface, the tangible impact could be far-reaching. The revenue that supports many of the financial tools that families rely on could shrink, leading to higher fees, fewer services, less access to safe credit, and the loss of rewards programs that help working families stretch their budgets.

For many Coloradans, credit card rewards are not a luxury, they are a financial tool. 

Cash-back rewards help cover groceries and household bills. Points can help families pay for gas, transportation, or school supplies. Travel miles make it possible to visit loved ones, pursue employment opportunities, or take the kind of family trip that otherwise would not be affordable.

For families living paycheck to paycheck, every dollar matters. These rewards are often one of the few ways families can offset rising costs. Weakening or eliminating those benefits will not hurt everyone equally; those already facing the greatest financial challenges would bear the brunt of the impact.

At this moment of widespread financial pressure on families, we should not support policies that create barriers to affordable credit or strip away the practical financial tools many rely on for stability.

The impact would not stop with individual households. Colorado’s economy is deeply connected to consumer spending and tourism.

Travel rewards programs help bring visitors to our state and help Colorado families travel within and beyond our communities. According to Airlines for America, airline credit card rewards funded travel for more than 740,000 domestic visitors to Colorado. Those visitors generated over $1.2 billion in economic activity and supported nearly 9,800 jobs.

Tourism overall supports more than 188,000 jobs across Colorado. Our small businesses, cultural institutions, and local attractions all depend on visitors and consumer spending. If travel rewards disappear and families cut back, the ripple effects will be felt far beyond the banking industry.

Fewer travelers mean fewer customers walking into local businesses. It means less revenue in our communities, fewer jobs, and less funding available for the public services our families rely on.

The threat is not only at the federal level, but from the state as well. While what is being proposed in Colorado via SB 134 is not as far-reaching as what is being proposed in Washington, it is still a step in the wrong direction, one that will negatively impact small businesses, especially those with a great deal of foot traffic. 

Colorado has worked hard to build an economy that is more inclusive and more equitable. We have fought to create opportunity for communities that have too often been left behind. We should be asking whether these types of legislation move us closer to that vision or further away from it.

Through our advocacy work in communities across Colorado, we have seen firsthand how important it is to protect the tools that help families build stability. We cannot afford to pass policies that unintentionally widen economic disparities or make it harder for working families to get ahead.

This is not simply a conversation about credit card processing. It is a conversation about economic fairness, access, and whether our policies truly reflect the realities families are facing every day.

Colorado’s future depends on ensuring that growth and opportunity reach everyone. That means protecting the practical financial tools that help families weather difficult times, participate in our economy, and build a stronger future for themselves and their communities. At this moment, lawmakers in Denver are considering passage of SB 134 while others Washington are deciding whether to slip the Credit Card Competition Act into “must-pass” federal legislation. 

We urge them to reject both of these misguided ideas.