NACS urges CFPB to finalize strong open banking rule

ALEXANDRIA, Va. — NACS has joined a coalition of financial technology and retail organizations in urging the Consumer Financial Protection Bureau (CFPB) to finalize a strong open banking rule that protects consumers’ ability to securely access and share their financial data without extra costs.

In a letter to the CFPB, NACS—along with the Financial Technology Association, American Fintech Council, Blockchain Association, Crypto Council for Innovation, Financial Data and Technology Association, National Grocers Association, and National Retail Federation—called for two key safeguards as the agency finalizes its Section 1033 rule on open banking.

The coalition asked the Bureau to uphold the established definition of “representative,” allowing consumers to designate third-party service providers to act on their behalf, and to maintain the ban on data access fees. “Over 100 million Americans rely on open banking to access affordable, easy-to-use tools that help them take control of their financial lives and manage their businesses,” the letter stated.

The groups argued that allowing banks to impose fees for data access would undermine competition and consumer choice. “This isn’t a suggestion or a service banks can charge for—it’s a legal requirement,” the letter emphasized.

Separately, NACS and the International Franchise Association sent a joint letter highlighting the broader impact of the rule on small businesses and consumer payment options. “The markets for consumer-to-business payments in the United States today, which are dominated by legacy banks and credit card companies, are simply broken,” the groups wrote. “The market is not competitive and has not kept pace with innovations that have taken hold in much of the world.”

NACS also endorsed a related letter from the Merchant Payments Coalition, which argued that Section 1033 of the Dodd-Frank Act clearly gives consumers the right to access their own financial data without being charged for it. The MPC emphasized that consumers should be free to choose any secure third-party provider—whether a fintech company or payments platform—to access and use their data on their behalf.

MPC backs call for court to uphold ban on swipe fees on sales tax and tips

The law was initially set to take effect this July, but the state legislature postponed it for one year while the lawsuit is pending.

 

Together, the organizations are urging the CFPB to finalize an open banking framework that guarantees fair access, encourages innovation, and provides consumers with greater control over their financial decisions.