Russia’s invasion of Ukraine has created a strong ripple throughout various industries. As a result, Visa and Mastercard are putting their foot down by blocking multiple financial institutions from their payment networks. A very interesting decision, although one that was bound to happen sooner or later.
Mastercard and Visa Make Their Move
In an unsurprising development, Visa and Mastercard weigh in on the Russia-Ukraine situation. The invasion of a sovereign nation has met tremendous criticism from various leaders and industries. Moreover, Western governments have agreed to exclude Russian banks from the Swift messaging network, making it slightly easier for others to impose similar sanctions.
Mastercard CEO Michael Miebach stated:
“As a result of sanction orders, we have blocked multiple financial institutions from the Mastercard payment network. We will continue to work with regulators in the days ahead to abide fully by our compliance obligations as they evolve.”
Visa took a very similar approach by blocking sanctioned banks from payment rails starting today. However, whether these financial measures will make a meaningful difference in Russia remains unclear. Moreover, it seems unlikely President Putin will order the withdrawal of troops all of a sudden, as nothing has changed on that front.
Other financial players have begun imposing limits for Russian clients. Wise and N26 have very low daily limits in place for transfers to Russia. Paysera is no longer processing transactions tied to Russian accounts for the foreseeable future.
For paid/sponsored articles, FintechMode neither endorses nor takes responsibility for the accuracy, timeliness, quality, and content of said articles. The statements, views and opinions expressed in paid/sponsored articles are solely those of the content provider and readers are reminded that Cryptocurrency products are unregulated in most locations and can be highly risky. Do your own research and consult relevant financial experts before making any investment decisions. FintechMode will not be held accountable, either directly or indirectly, for any harm or loss that may stem from or be linked to the usage or reliance on any information, goods, or services mentioned on this page. If you have any concerns, please email [email protected] or refer to our Terms & Conditions