Visa and Mastercard suspend their services in Russia

Visa and Mastercard are suspending operations in Russia as another major blow to the country’s financial system, according to a report by Associated Press.

In a statement on the Visa website, the company said it was working with partners in Russia to “stop all transactions in the coming days.” A separate press release from Mastercard contains a similar statement, noting that it is suspending services in Russia and that its decision was not taken “lightly”. Both companies explain that any transactions made with Mastercard or Visa cards issued by banks in Russia will not work outside Russia, while all cards issued by banks outside the country will not work in Russian merchants or ATMs.

“We regret the impact this will have on our esteemed colleagues, as well as on the customers, partners, merchants and cardholders we serve in Russia,” said Visa CEO Al Kelly. “This war and the continuing threat to peace and stability require that we respond in accordance with our values.

As noted by BloombergAnyone with a card issued in Russia will still be able to pay for products and services with Mastercard and Visa cards, but no financial company will process transactions – instead they will have to process them with the National Payment Card System of Russia (NSPK) .

The announcement by Visa and Mastercard comes shortly after Ukrainian President Vladimir Zelensky met with US lawmakers and called for a halt to the two companies’ operations in Russia. “I’m glad to hear that Mastercard and Visa will suspend all operations in Russia immediately,” said Congressman Brad Sherman (D-CA). said on Twitter after the meeting with Zelenski.

Earlier this week, Visa and Mastercard banned selected Russian banks from participating in their networks in response to US financial sanctions. “This decision stems from our recent actions to block many financial institutions from the Mastercard payment network, as required by regulators worldwide,” says Mastercard.

The United States and the European Union have blocked some Russian banks from the key global financial system SWIFT since Russia’s invasion of Ukraine last month. The sanctions also cut off Apple Pay and Google Pay for some Russian consumers, with PayPal shutting down the country early this morning. A number of other large companies, including Samsung, Microsoft, Apple and Google, have stopped doing business with Russia.