Visa and Mastercard announced on Saturday that they would suspend operations in Russia within days. Cards issued in Russia will stop working outside of Russia. Likewise, cards issued outside of Russia will stop working in Russia.
Both credit card companies join a long list of companies that have halted services in Russia. PayPal, Netflix, Apple, Intel, Inditex, Airbnb and Rolls Royce are just some of the brands that have taken action against Russia.
Visa issued the following statement:
“We are compelled to act after Russia’s unprovoked invasion of Ukraine and the unacceptable events we have witnessed.
“We regret the impact this will have on our valued colleagues, as well as the customers, partners, merchants and cardholders we serve in Russia. This war and the ongoing threat to peace and stability demands that we respond. in accordance with our values.
MasterCard released the following statement:
“Cards issued by Russian banks will no longer be supported by the Mastercard network. Also, any Mastercard issued outside the country will not work at Russian merchants or ATMs.
“We do not take this decision lightly. Mastercard has been operating in Russia for over 25 years. We have almost 200 colleagues there who make this business so essential for many stakeholders.
“As we take these steps, we will continue to focus on their safety and well-being, including continuing to provide them with pay and benefits. Where appropriate, and where permitted by law, we We will use their passion and creativity to work towards restoring operations.”
Sberbank will adopt Chinese UnionPay
Russia has been preparing for such actions for several years (since the annexation of Crimea). In 2014, Russia introduced the National Payment Card System (NPCS). Mir cards as well as the Financial Message Transfer System (STFS, which is an alternative to SWIFT) were launched to minimize the impact of possible economic sanctions.
Sberbank has announced that it may issue Mir cards based on the Chinese operating system, UnionPay. UnionPay is a Chinese credit card company, it is used by more than 120 countries.
If not followed by retaliation from the US or EU, such a move could further dampen Visa and Mastercard’s announcement.
Visa and Mastercard announced on Saturday that they would suspend operations in Russia within days. Cards issued in Russia will stop working outside of Russia. Likewise, cards issued outside of Russia will stop working in Russia.
Both credit card companies join a long list of companies that have halted services in Russia. PayPal, Netflix, Apple, Intel, Inditex, Airbnb and Rolls Royce are just some of the brands that have taken action against Russia.
Visa issued the following statement:
“We are compelled to act after Russia’s unprovoked invasion of Ukraine and the unacceptable events we have witnessed.
“We regret the impact this will have on our valued colleagues, as well as the customers, partners, merchants and cardholders we serve in Russia. This war and the ongoing threat to peace and stability demands that we respond. in accordance with our values.
MasterCard released the following statement:
“Cards issued by Russian banks will no longer be supported by the Mastercard network. Also, any Mastercard issued outside the country will not work at Russian merchants or ATMs.
“We do not take this decision lightly. Mastercard has been operating in Russia for over 25 years. We have almost 200 colleagues there who make this business so essential for many stakeholders.
“As we take these steps, we will continue to focus on their safety and well-being, including continuing to provide them with pay and benefits. Where appropriate, and where permitted by law, we We will use their passion and creativity to work towards restoring operations.”
Sberbank will adopt Chinese UnionPay
Russia has been preparing for such actions for several years (since the annexation of Crimea). In 2014, Russia introduced the National Payment Card System (NPCS). Mir cards as well as the Financial Message Transfer System (STFS, which is an alternative to SWIFT) were launched to minimize the impact of possible economic sanctions.
Sberbank has announced that it may issue Mir cards based on the Chinese operating system, UnionPay. UnionPay is a Chinese credit card company, it is used by more than 120 countries.
If not followed by retaliation from the US or EU, such a move could further dampen Visa and Mastercard’s announcement.
