Brazilian antitrust agency CADE opened an investigation into the country’s largest private-sector lender, Itaú Unibanco, and its card processor Rede for alleged anticompetitive practices, reported Reuters.
CADE stated Itau should not be able to demand that merchants have a checking account in the bank as a condition to advance credit card payments to them.
In April, Itaú announced it would pay merchants in two days with no interest rates, compared with the usual 30 days, in an unprecedented market move. The offer, however, was only available for small- and mid-sized companies with checking accounts at the bank.
Itaú said in a statement that the terms offered by its card processor were helping to foster competition and lower costs for businesses.
Full Content: Reuters
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