I’ve spent most of my life working in restaurants. At 15, I worked tables at the restaurant my dad managed while my mom bartended. Even then, I knew I wanted to be a chef — though my dad wasn’t thrilled about it. He knew how tough the industry could be, the long hours, the tight margins, and the relentless work. But I was determined.  

I went to culinary school, won cooking competitions, and worked my way up through some of the best kitchens around the country. Eventually, I became an executive chef, but my dream was always to have a place of my own. In 2017, I finally made that happen, opening my first restaurant in Colorado’s Vail Valley. Today, I operate three: Craftsman Brew Co., Bird Craft, and Il Mago.  

Running a restaurant, let alone three, is never easy. COVID-19 nearly took us under, but we made it through, and for a time, business was booming. People across the Vail Valley were eager to dine out, and we were grateful for the support. But the last couple of years have been some of the hardest we’ve ever faced. Inflation has driven up the cost of labor, food, rent — just about everything. Margins in the restaurant industry were already razor-thin, but now we’re dealing with what feels like a perfect storm.  

One of the most frustrating and unfair costs we face is something most customers don’t even think about — credit card swipe fees. Every time someone pays with a credit card, banks and credit card companies take a cut — typically around 3% of every transaction. That might not sound like much, but when nearly all your sales are paid with plastic, it adds up fast. Swipe fees in the U.S. are among the highest in the world because two companies, Visa and MasterCard, control almost the entire market. This duopoly allows them to charge astronomical fees that would never fly in a competitive market.

Last year alone, I paid $125,000 in credit card processing fees at Craftsman. At Il Mago, it was $56,000. That’s more than $181,000 in money that isn’t going to my employees, improving my restaurants, or keeping menu prices in check. Instead, it’s going straight into the pockets of massive financial institutions.  

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What’s worse, these companies aren’t just charging fees on my revenue — they’re taking a percentage on sales tax and tips, too. That means every time I collect tax for the state or process tips that belong to my staff, the credit card companies still take their cut. It’s outrageous. It’s like I’m paying a handling fee just to pass along money that isn’t even mine.  

Imagine if your employer took 3% of the taxes withheld from your paycheck before sending them to the IRS. You’d be furious. That’s exactly what’s happening to small businesses across Colorado, and we’ve been putting up with it for too long.  

The technology already exists to separate taxable amounts from total transactions. The credit card companies just don’t want to use it. They’d rather keep milking this broken system, siphoning away profits from small businesses like mine while padding their bottom line.  

But other states are starting to push back. Illinois is the first state to pass legislation that will ban swipe fees on sales tax and tips, a move that will save restaurants, retailers and small businesses thousands of dollars each year. Now, Colorado lawmakers have the chance to do the same. House Bill 1282 would stop credit card companies from charging these unfair fees on sales tax and tips, keeping more money in local businesses and communities instead of the wealthy banking institutions. The bill would even establish a cap on swipe fees on charitable contributions, which would further help keep dollars circulating within Colorado’s economy.

To be clear, this legislation won’t completely solve oppressive credit card processing fees. And, we’re still dealing with rising costs on every front. But this is a simple, common-sense fix that would put real money back into small businesses overnight. It wouldn’t cost the state a dime, and it would help ensure that local businesses aren’t forced to pay private corporations just to comply with tax laws. 

Restaurants like mine are already doing everything we can to stay afloat. We’re cutting costs where possible, reworking menus, and finding creative ways to bring in customers. But we shouldn’t have to pay an unnecessary toll just to process payments. If lawmakers truly support local businesses, they’ll act now to stop this unfair practice and pass HB 1282 into law.  

Chris Schmidt is the owner of Craftsman Brew Co., Bird Craft, and Il Mago in Vail Valley