Card providers like Visa & Mastercard companies immediately suspended their services in Russia. Visa & Mastercards are the major service providers for Credit & Debit Card.
Visa, Mastercard & PayPal blocked Russia from their services with some exceptions over Ukraine Invasion. Visa credit cardholders, as well as all other cardholders like visa debit cardholders, may be worried. Mastercard debit and credit cards are also affected.
This decision came with the Western sanction rollout targeting Russia to respond to their invasion of Ukraine. Visa was founded in 1958 in California to ease inter-bank transactions and later became an international brand available in more than 200 countries and yet the largest service provider on Earth.
Mastercard was founded in 1966 in New York and is available in more than 210 countries.
However, this sanction will not be affected to domestic uses in Russia yet. Consumers will still be able to use Mastercard and Visa-branded cards for domestic transactions in Russia, the country’s state-backed payments network has said, reducing the impact of the US firms’ decision to pull services over the invasion of Ukraine.
Russia’s homegrown payments system Mir said the cardholders would still be able to access their funds, make withdrawals and domestic transfers – at least until their bank cards expire.
Mir has processed most domestic payments in Russia since 2015, while foreign operators such as Visa and Mastercard continued to run international transactions. The operator – which is 100% owned by the country’s central bank – was established on government orders to protect the economy against sanctions imposed over Moscow’s annexation of Crimea in 2014.
However, homegrown companies like Mir or China’s Union pay will not be recognized in International Transactions any soon. With the bad reputation of Russia’s internet security and the bad reputation of China’s privacy policies, users across the World may hesitate to use Chinese or Russian based payment companies, especially online and international transactions.
The statement was issued shortly after the US firms declared on Saturday they would be suspending Russian operations in light of Moscow’s continued military assault on Ukraine.
Both Mastercard and Visa’s decision to suspend their Russian operations will primarily impact foreign payments, meaning local consumers will no longer be able to use their Russian cards abroad or for international payments online. Foreign customers will also be blocked from making payments to Russian companies or withdrawing cash within the country.
PayPal stopped accepting new customers in Russia on Wednesday (Mar 02, 2022) and on (Mar 05, 2022) Saturday expanded that block, saying its services there – primarily, customers transferring money to each other – had been suspended. It added that it would allow withdrawals “for a period of time, ensuring that account balances are dispersed in line with applicable laws and regulations”.