Visa and Mastercard suspend their services in Russia

According to an Associated Press report, Visa and Mastercard are ceasing operations in Russia, dealing yet another blow to the country's financial system.

In an announcement on Visa's website, the company says it is working with partners in Russia to "stop all transactions in the coming days." A separate press release from Mastercard carries a similar message, noting that the company is ceasing its services in Russia and that its decision was not "taken lightly". The two companies explain that transactions with Mastercard or Visa cards issued by banks in Russia do not work outside Russia, while any cards issued by banks outside the country do not work at merchants or ATMs. Russian automatics.

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“WE REGRET THE IMPACT THIS WILL HAVE”
“We regret the impact this will have on our valued colleagues and the customers, partners, merchants and cardholders we serve in Russia,” Visa CEO Al Kelly said. "This war and the continuing threats to peace and stability demand that we respond in accordance with our values."

As noted by Bloomberg, anyone with a Russian-issued card can still pay for goods and services using Mastercard and Visa cards, but none of the financial companies will process transactions - the national credit card system Russian payment (NSPK) will have to take care of it. in place.

Visa and Mastercard's announcement comes shortly after Ukrainian President Volodymyr Zelenskyy met with US lawmakers and asked them to halt the two companies' operations in Russia. “I am delighted to hear that Mastercard and Visa will immediately cease all operations in Russia,” Congressman Brad Sherman (D-CA) said on Twitter after meeting Zelenskyy.

Earlier this week, Visa and Mastercard banned some Russian banks from their networks in response to financial sanctions the United States imposed on the country. “This decision follows our recent action to ban several financial institutions from the Mastercard payment network, as requested by regulators around the world,” Mastercard said.

The United States and the European Union have blocked some Russian banks from the key global financial system, SWIFT, following Russia's invasion of Ukraine last month. The sanctions also banned Apple Pay and Google Pay for some Russian consumers, as PayPal suspended operations in the country earlier in the day. A number of other major companies, including Samsung, Microsoft, Apple and Google, have all stopped doing business with Russia.