Visa announces in a statement that it will “work with its customers and partners in Russia to stop all visa transactions in the coming days”. Later, the statement said, “All transactions initiated with Visa cards issued in Russia will cease to work outside this country, and Visa cards issued by financial institutions outside Russia will no longer work in the Russian Federation.”
“We are compelled to act in the wake of Russia’s unprovoked occupation of Ukraine and unacceptable events,” said Al Kelly, chairman and CEO of Visa Inc. “We regret that this will have an impact on our valued allies and the customers, partners, merchants and cardholders we serve in Russia,” he added, adding, “but war and the continuing threat to peace and stability are needed. We are responding to our values.”
In 2020, fee transactions were handled through Visa and MasterCard
MasterCard has issued a more detailed announcement. “The world has been watching the shocking events of the Russian invasion of Ukraine for more than a week. Is aware of the nature and the uncertain economic environment, the company reports about the suspension of network services in Russia.
“Cards issued by Russian banks are no longer supported by the MasterCard network. Any MasterCard issued outside the country will not work on Russian merchants or ATMs. ”
“These are very difficult days and will continue – especially for our staff in Ukraine and their families, our colleagues in the region with relatives and friends, our colleagues in Russia, and the rest of us who see from afar.” – We read.
Of the debit and credit cards issued in Russia, Visa and MasterCard accounted for 74 percent by 2020. Fee Transactions – According to an industry release by Nilsson, cited in The Wall Street Journal. The newspaper, which had been analyzing the situation for several days, pointed out that Russia might find a way to deal with the expulsion of the giants. This is Mir – a competing Russian payment network covering almost the rest of the market. “Thanks to that, Russians can make purchases with cards in the country. Although Visa and MasterCard do not support transactions using Sberbank cards, for example, purchases with them can be sent through the Mir network,” WSJ wrote.
The Kremlin spokesman Dmitry Peskov acknowledged a year ago that the biggest problem with the Mir organization was the lack of foreign will to accept it.
Central Bank: Cards still work in Russia
The Russian Central Bank announced late in the evening that Visa and MasterCard, issued by Russian banks, would continue to operate in Russia until their expiration date. “The transactions in it are processed locally within the National Payment Card System and are not subject to restrictions. Customers’ funds are fully credited to the accounts associated with such cards,” the statement said.
According to the Central Bank, Visa and MasterCard holders in Russia can still make transactions at ATMs, make payments with cards and make card-to-card transactions. At the same time, the announcement stipulates that international transactions will not be available. This applies to both purchases made overseas online stores and the use of these cards overseas.
Alfa-Bank: For at least three days everything will be as usual
MasterCard and Visa are temporarily leaving Russia. What does this mean? For a few days (at least three course) everything will work as usual. Alfa-Bank, Russia’s largest private bank in Telegram, said the acquisition would take place worldwide.
After this date, Alfa-Bank’s Visa and MasterCard will continue to operate in Russia as before. Abroad – not “temporarily”. The bank recommended that the money be given to those who are currently abroad.
Therefore, the decision to restrict operations through Visa and MasterCard will not affect the operation of the cards (issued by Russian banks) in Russia. TASS concludes that this is possible because all payments in Russia go through the national NSPK system and are independent of foreign payment solutions.
“Proud explorer. Freelance social media expert. Problem solver. Gamer. Extreme travel aficionado.”