Disclaimer: This page in no way provides legal advice and should not be interpreted as such.  1ntegrity.biz has done it’s best to research the ins and outs of PayLo prior to offering to our Colorado customers.

There are 11 states which need to be careful with implementation of Cash Discount Programs.  Colorado is among the 11.

Eleven states that Prohibit Surcharging—California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas—and Puerto Rico have laws that prohibit merchants from charging consumers with surcharges on credit card transactions.

PayLo explains it this way:

A “surcharge” occurs when a merchant increases the price for credit card purchases. A “cash discount” occurs when a merchant decreases the price posted for their goods and services for alternative payment / purchases. No surcharges or fees are allowed on debit card transactions, specifically PIN based debit.–from PayLo’s FAQ

What does Colorado State Legislation say?

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Colorado State Legislation

While prohibiting surcharges on credit cards, Colorado does allow merchants to offer cash discounts:

Colo. Rev. Stat. §5-2-212 (Surcharging)

(1) Except as otherwise provided in §§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.

Colo. Rev. Stat. §5-2-212 (Cash Discounts)

(2) 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.