Colorado Interchange Veto, Illinois IFPA Delay, NMI Buys Fee Navigator

This week, Colorado's governor vetoed interchange legislation that had bipartisan support. Illinois pushed its Interchange Fee Prohibition Act back to July 1, 2027, one year later than scheduled. NMI acquired Fee Navigator, a merchant pricing analysis tool. Each item affects how U.S. merchants plan card acceptance costs and compliance timelines for the remainder of 2026.

## Industry moves

**Colorado interchange veto.** Governor Jared Polis vetoed SB 26-134, which would have removed sales tax from the interchange-fee calculation on card transactions. Had the bill passed, Colorado merchants would have paid interchange only on pre-tax transaction amounts. A similar law is already in effect in Illinois. The veto keeps current fee structures in place: Colorado merchants continue to pay interchange on the full transaction amount, including sales tax. Sources: Payments Dive (https://www.paymentsdive.com/news/colorado-interchange-fee-law-vetoed/822002/) and Digital Transactions (https://www.digitaltransactions.net/colorado-bill-to-cut-sales-tax-from-interchange-calculation-vetoed/).

**Illinois IFPA delay.** Illinois's Interchange Fee Prohibition Act, which would bar interchange fees on the tax and tip portions of transactions, now takes effect July 1, 2027. That is one year past the prior schedule. The delay came through a last-minute budget provision. Illinois merchants should revise compliance plans to reflect the new date. Source: Digital Transactions (https://www.digitaltransactions.net/the-illinois-ifpa-implementation-date-is-extended-again/).

**NMI acquires Fee Navigator.** NMI purchased Fee Navigator, a pricing analysis tool used by acquirers to evaluate merchant processing costs. Deal terms were not disclosed. Merchants processing through NMI-connected acquirers should request an updated fee schedule and confirm whether pricing methodology changes. Source: Digital Transactions (https://www.digitaltransactions.net/nmi-buys-fee-navigator-as-merchant-pricing-gets-hot/).

## The takeaway

Illinois IFPA now takes effect July 1, 2027. Update your compliance calendar immediately. Colorado merchants remain on current interchange structures after the veto. If you process through NMI-connected acquirers, request a current fee schedule. These delays are a window to audit your card acceptance costs.