U.S. credit card brands Visa and Mastercard have joined the ranks as companies suspend their operations in Russia in response to Russia’s military operations in Ukraine.
Both companies announced that credit cards issued in Russia will not be able to be traded outside Russia, and credit cards issued by financial institutions outside Russia will also not be able to be traded in Russia.
The move could cost Visa and Mastercard a lot of business. Both companies said their net income in Russia in 2021 would account for about 4% of the company’s total revenue.
But it also means that the Russian economy will take a bigger hit. Under sanctions from Western countries, the country is facing rising inflation, deepening economic difficulties and a severe squeeze on imported goods.
However, Russia has been taking various steps in recent years to increase the independence of its financial system. Russia, for example, established its own banking information system as an alternative to the global payment system SWIFT. In addition, Russia began operating its own bank card payment system in 2015 to reduce its reliance on foreign credit card companies.
U.S. credit card company suspends business in Russia in response to sanctions against Russia, MasterCard VISA. Click on the video to see what it is!