CO Code § 5-2-212 (2021)
2021 Colorado Code|Title 5 - Consumer Credit Code|Article 2 - Finance Charges and Related Provisions|Part 2 - Maximum Finance Charges and Other Fees and Charges|§ 5-2-212. Surcharges on Credit Transactions - Enforcement - Definitions

  [ ] Except as otherwise provided in sections 24-19.5-103 (3) and 29-11.5-103 (3), C.R.S., no seller or lessor in any sales or lease transaction or any company issuing credit or charge cards may impose a surcharge on a holder who elects to use a credit or charge card in lieu of payment by cash, check, or similar means. A surcharge is any additional amount imposed at the time of the sales or lease transaction by the merchant, seller, or lessor that increases the charge to the buyer or lessee for the privilege of using a credit or charge card. For purposes of this section, charge card includes those cards pursuant to which unpaid balances are payable on demand.   [Editor's note: This version of subsection (1) is effective July 1, 2022.] Except as otherwise provided in sections 24-19.5-103 (3) and 29-11.5-103 (3), a seller or lessor in any sales or lease transaction may impose a surcharge on a buyer or lessee who elects to use a credit or charge card in lieu of payment by cash, check, or similar means in accordance with subsection (1)(c) of this section.    A surcharge is any additional amount imposed at the time of the sales or lease transaction by the merchant, seller, or lessor that increases the charge to the buyer or lessee for the privilege of using a credit or charge card.    A seller or lessor may impose a surcharge pursuant to either subsection (1)(c)(I) or (1)(c)(II) of this section as follows:   An amount not to exceed two percent of the total cost to the buyer or lessee for the sales or lease transaction. A seller or lessor that imposes a surcharge on credit or charge cards shall post signage at the seller's or lessor's premises in a manner that is visible to customers or, for a sales or lease transaction made online, display before an online customer's completion of the sales or lease transaction in a manner that is visible to the online customer, the following language:    (A) An amount not to exceed the merchant discount fee that the seller or lessor incurs in processing the sales or lease transaction. The seller or lessor or the seller's or lessor's service provider shall calculate the surcharge at an amount not to exceed the actual amount paid to the processor or service provider to process the transaction.       For any goods or services purchased or leased through payment by credit or charge card, the seller, lessor, or service provider shall provide as a separate line item on the customer's receipt the surcharge amount imposed pursuant to subsection (1)(c) of this section.    A seller or lessor may impose only a single credit or charge card surcharge per sales or lease transaction pursuant to subsection (1)(a) of this section.    A seller or lessor shall not impose a surcharge if a customer elects to pay for goods or services by:   Using cash or a check;    Using a debit card, whether or not a personal identification number is used;    Processing a payment as a debit payment; or    Redeeming a gift card.       As used in this subsection (1):   “Charge card” includes those cards pursuant to which unpaid balances are payable on demand.    “Merchant discount fee” means the actual fee, expressed as a percentage or fixed amount of the total transaction amount, that a seller or lessor pays its processor or service provider to process the transaction.          A discount offered by a seller or lessor for the purpose of inducing payment by cash, check, or other means not involving the use of a seller or lender credit card shall not constitute a finance charge if such discount is offered to all prospective buyers and its availability is disclosed to all prospective buyers clearly and conspicuously in accordance with regulations of the administrator.    [ ]   A seller or lessor who violates this section:   Violates the code; and    Is subject to liability as a creditor under the code.       For purposes of liability for a violation of this section, a buyer or lessee is a consumer.       [ ] A seller or lessor may impose a surcharge under this section regardless of any contract or agreement that the seller or lessor enters into on or after July 1, 2022.    Editor's note: This version of subsection (1) is effective until July 1, 2022.   (1)   To cover the cost of processing a credit or charge card transaction, and pursuant to section 5-2-212 , Colorado Revised Statutes, a seller or lessor may impose a processing surcharge in an amount not to exceed 2% of the total payment made for goods or services purchased or leased by use of a credit or charge card. A seller or lessor shall not impose a processing surcharge on payments made by use of cash, a check, or a debit card or redemption of a gift card.    To cover the cost of processing a credit or charge card transaction, and pursuant to section 5-2-212 , Colorado Revised Statutes, a seller or lessor may impose a processing surcharge in an amount not to exceed the merchant discount fee that the seller or lessor incurs in processing the sales or lease transaction. A seller or lessor shall not impose a processing surcharge on payments made by use of cash, a check, or a debit card or redemption of a gift card.  Editor's note: Subsection (3) is effective July 1, 2022. Editor's note: Subsection (4) is effective July 1, 2022.  History. Source: L. 2000: Entire article R&RE, p. 1206, § 1, effective July 1. L. 2003: (1) amended, p. 1442, § 3, effective April 29. L. 2021: (1) amended and (3) and (4) added,(SB 21-091), ch. 476, p. 3404, § 1, effective July 1, 2022.    Editor's note:   This section is similar to former § 5-3-110 , as it existed prior to 2000.   ANNOTATION   Law reviews. For article, “Colorado Usury”, see 11 Colo. Law. 2557 (1982).