Credit card processing in Colorado

What is different about taking cards in Colorado

Surcharges are capped at 2 percent or your cost

Since July 1, 2022, Colorado law (C.R.S. 5-2-212) allows a credit card surcharge capped at either 2 percent of the total or your actual processing cost. Each option needs its own state-prescribed sign at the premises or before an online checkout. The surcharge must be a separate line on the receipt, only one is allowed per transaction, and it cannot apply to cash, checks, debit cards or gift card redemptions.

Total price shown as one number since January 1, 2026

Colorado's pricing law (C.R.S. 6-1-737) requires any displayed or advertised price to show the total as a single number, more prominent than other pricing, including fees that must be paid or are not reasonably avoidable. Whether a card surcharge the customer can avoid by paying another way counts is not settled, so we set it up conservatively.

Card fees cannot come out of tips

Colorado's labor division says employers may not use tips to pay card processing fees. An employer that does loses the tip credit, must pay the full minimum wage, and must return the tips (C.R.S. 8-4-103(6) and the COMPS Order).

A compliant surcharge is generally not taxed

The Department of Revenue has said a surcharge that follows the surcharge law, credit only and on its own receipt line, is not part of the taxable purchase price (General Information Letter GIL-22-004, which is non-binding guidance). Home-rule cities that collect their own sales tax may treat it differently.

How we set it up in Colorado

We set up the right sign for the cap you choose, the separate receipt line and credit-only surcharging, or Dual Pricing if that fits better. Tips go to your staff in full, and prices are shown the way the 2026 law requires.

Check any state in our surcharge checker. Rules change, so we confirm the current position before configuring anything. This is general information, not legal advice.

See what you pay

Send one recent statement for a free statement review. We find your true effective rate, name every fee, and show where it can come down. Savings are estimates based on your own statement.