Visa, Mastercard and PayPal Suspend Operations In Russia
Global payment giants, Visa, Mastercard and PayPal are suspending operations in Russia, the companies announced over the weekend, citing the country’s conflict with Ukraine.
Visa starts to work to halt transactions in Russia, but it will take a few days, the company announced. According to Mastercard, it would suspend all its network services in Russia, following the military operation in Ukraine.
Visa Global communications vice president Andy Gerlt commented:
“Once complete, all transactions initiated with Visa cards issued in Russia will no longer work outside the country and any Visa cards issued by financial institutions outside of Russia will no longer work within the Russian Federation.”
Visa Chairman and CEO Al Kelly said:
“We are compelled to act following Russia’s unprovoked invasion of Ukraine, and the unacceptable events that we have witnessed. We regret the impact this will have on our valued colleagues, and on the clients, partners, merchants and cardholders we serve in Russia. This war and the ongoing threat to peace and stability demand we respond in line with our values.”
In a similar manner, Mastercard said that in addition to blocking some Russian financial institutions, it will also stop support for any cards issued by Russian banks and block transactions from cards issued outside Russia but used at Russian merchants or ATMs.
Ukrainian Vice Prime Minister Mykhailo Fedorov shared a letter sent by PayPal CEO Dan Schulman announcing a similar shutdown.
We received a letter from @Dan_Schulman, CEO PayPal. So now it’s official: PayPal shuts down its services in Russia citing Ukraine aggression. Thank you @PayPal for your supporting! Hope that soon you will open it in for 🇺🇦 pic.twitter.com/RaJxEMSLQe
According to PayPal spokesperson the shutdown would still “ensure that account balances are dispersed in line with applicable laws.”
Companies have been under public pressure to suspend operations in Russia due to its invasion of Ukraine. Most crypto companies have not agreed to unilaterally block all Russian residents, despite appeals from Ukrainian officials and lawmakers elsewhere.
The CEO of crypto exchange Kraken, Jesse Powell, said the company would do so if legally compelled to. Ukraine has asked Coinbase, Binance, Huobi, KuCoin, Bybit, Gate.io, Whitebit and Ukraine-based Kuna to block all Russian accounts.
According to Russia’s central bank Visa and Mastercard cards would continue to work within Russia after the credit card processors announced their suspensions.
“Operations on them are processed within the country in the National Payment Card System, and sanctions do not affect them. Customer funds on accounts linked to such cards are fully preserved and available.”
