Visa, Mastercard, and PayPal suspend Russian operations in response to Ukraine invasion

[Jimmy2x]

Bottom line: Visa and Mastercard issued separate statements on Saturday announcing their intent to suspend all Russian operations. The coordinated effort by the two largest credit networks in the world is another attempt to ratchet up the pressure on the already ailing Russian economy. The announcements came on the same day a letter from PayPal was released to Ukraine's Deputy Prime Minister. The letter clearly stated their support for the embattled country and their intent to take similar steps by suspending Russian services.

The statements from Visa and Mastercard echoed similar sentiments, citing Russia's unprovoked invasion of Ukraine and the unprecedented nature of the current conflict. The decision comes on the heels of recent sanctions that limited or removed Russian banks from the SWIFT messaging system, a move that cut off most Russian banks from communicating with the rest of the world using the network.

The actions by Visa and Mastercard mean that within several days any cards issued within the country will no longer work outside of Russia. In addition, any cards issued outside of Russia will no longer be usable at Russian businesses or ATMs.

The credit networks were not the only ones to take big steps to hamstring the Russian economy. On Saturday, a letter from Paypal to Ukrainian Deputy Prime Minister Mykhailo Federov outlined the company's support, which includes an enhanced donation platform as well as the company's intent to suspend any PayPal services in Russia until further notice. The company's decision also prevents the movement of Russian funds through Paypal's Xoom service, which allows funds to be transferred domestically or between users in dozens of international locations.

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

— Mykhailo Fedorov (@FedorovMykhailo) March 5, 2022

Russia's largest state-owned lender, Sberbank Rossil PAO, informed users that they would still be able to withdraw and transfer cash and pay as normal in Russia's online and storefront businesses. According to the bank, Russian transactions do not utilize foreign payment systems but instead pass through the country's National Payment Card System.

Bitcoin and other cryptocurrencies have begun to move into the spotlight as Russia's financial strains continue to mount. There has been increased pressure on exchanges such as Coinbase and Binance to block access from Russian customers, but the organizations are yet to make any moves. Even if exchanges were to block access, the decentralized nature of cryptocurrencies makes it almost impossible to alienate users, making it an attractive option.

Image credit: Roubles and cards by Vardan Papikyan

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https://www.techspot.com/news/93664-visa-mastercard-paypal-suspend-russian-operations-response-ukrainian.html

 

[Geralt]

All these sanctions create a temporary suffering, but in the long term just will make Russia stronger and more independent. They will find a way out and their relationship with China will become stronger too. All the Western sanctions are, in the long run, a serious mistake.

 

[Burty117]

All these sanctions create a temporary suffering, but in the long term just will make Russia stronger and more independent. They will find a way out and their relationship with China will become stronger too. All the Western sanctions are, in the long run, a serious mistake.

Why do you think they will get closer to China? Bare in mind China's economy isn't doing so great and Russia doesn't exactly make China anywhere near the money the west does.

 

[Geralt]

Why do you think they will get closer to China? Bare in mind China's economy isn't doing so great and Russia doesn't exactly make China anywhere near the money the west does.

China and India are the great winners. They will take the Russian market. Now they are speaking about using Chinese credit cards, for example. People move.

 

[emmzo]

All these sanctions create a temporary suffering, but in the long term just will make Russia stronger and more independent. They will find a way out and their relationship with China will become stronger too. All the Western sanctions are, in the long run, a serious mistake.

I know a lot of russians do not want this fratricide war. I know they don't want to become North Korea. They don't want to cling to the past, they want to build a better future. Russia is one of the greatest countries in the world, but it will never achieve its true potential by waging war and destruction. The war will leave Russia poorer and weaker. And yes, sanctions will also affect people all over the world, but Russia won't recover for decades. If you think China will break with the West and be all in with Russia, without asking serious concessions in return, think again. If Russia were to depend on China then it would become just a vasal state. China will never allow another great power at their border and they'll never break completely with the West as long as they love hi tech and big money.

 

[NotAChainsaw]

All these sanctions create a temporary suffering, but in the long term just will make Russia stronger and more independent. They will find a way out and their relationship with China will become stronger too. All the Western sanctions are, in the long run, a serious mistake.

I totally agree with Gerald. Not that long time ago Russian government wanted to force all payments from Visa and MasterCard to russian made card "Mir", but WTO rules (Russia is a member of WTO) strictly forbid any action like that, so that action been halted for a while. Now is the time and finally Russian government to promote its action and get some independence of US and other developed countries finance institutions, this all justified before WTO because of that action from Visa and MasterCard.
PS
WTO stands for free market aka all developed countries winning this because of capitalizations and developed economic system. Developing countries treats as colonies and they are as a meneral resorces base for developed countries.
Not everyone so cunning as China and coould not get "special" conditions in WTO.

 

[Beerfloat]

China and India are the great winners. They will take the Russian market. Now they are speaking about using Chinese credit cards, for example. People move.

Well, winners. I guess. I mean, it's the Russian market.

Sure, everyone is a millionaire, but regrettably it's all in rubles.

 

[VaRmeNsI]

Going to war with Ukraine was a dumb idea, the West has basically used them as bait to suck Russia into an insurgency type war which will be incredibly expensive to win.

 

[AlaskaGuy]

Why do you think they will get closer to China? Bare in mind China's economy isn't doing so great and Russia doesn't exactly make China anywhere near the money the west does.

https://twitter.com/i/web/status/1500372125143560193

 

[Execrate]

You might know that the Chips on today's credit cards are known as the EMV chip. The acronym stands for Eurocard, Master Card, & Visa. You told us how the last two stand in the Russia-Ukraine conflict. How about Eurocard???

 

[meric]

All these sanctions create a temporary suffering, but in the long term just will make Russia stronger and more independent. They will find a way out and their relationship with China will become stronger too. All the Western sanctions are, in the long run, a serious mistake.

All this will actually make USA stronger in the short and long term, too, because now Russia/China will be further isolated from the west, economically. EU will depend on USA more. USA will begin selling LNG to EU. Russian economy being isolated from the world, weakening them. This is actually everything USA wished for, in the same pack.

 

[Irata]

China and India are the great winners. They will take the Russian market. Now they are speaking about using Chinese credit cards, for example. People move.

The Russian market…or whatever is left of it.

Don‘t disagree that China will profit but Russia might end up being its b1tch or to put it more nicely becoming highly dependent on China.

 

[Irata]

You might know that the Chips on today's credit cards are known as the EMV chip. The acronym stands for Eurocard, Master Card, & Visa. You told us how the last two stand in the Russia-Ukraine conflict. How about Eurocard???

Eurocard was taken over by Mastercard several years ago. There is no European payment scheme but they are working on one.

 

[emmzo]

Going to war with Ukraine was a dumb idea, the West has basically used them as bait to suck Russia into an insurgency type war which will be incredibly expensive to win.

This is basically the russian narrative embraced by far right western apologists. They've been provoked! The sneaky West is to be blamed for the slaughter now happening in Ukraine. Make up your mind: either Putin is a genius or the West plays him like a fiddle?

 

[VaRmeNsI]

This is basically the russian narrative embraced by far right western apologists. They've been provoked! The sneaky West is to be blamed for the slaughter now happening in Ukraine. Make up your mind: either Putin is a genius or the West plays him like a fiddle?

The idea that one side must be bad and the other must be good is rather lazy, I prefer a more nuanced view.

 

[McMurdeR]

All these sanctions create a temporary suffering, but in the long term just will make Russia stronger and more independent. They will find a way out and their relationship with China will become stronger too. All the Western sanctions are, in the long run, a serious mistake.

Go ask the Iranians how much fun they're having. China is buying Iranian oil - at bargain basement prices. Russia can expect a similar 'partnership'.

 

[CowsGotMilk]

Good move Visa and MasterCard, we can't support regimes like Russia with western technology. Maybe one day Russians will stand up against its dictator.

 

[emmzo]

The idea that one side must be bad and the other must be good is rather lazy, I prefer a more nuanced view.

You have the freedom to do that, but in Russia if you disagree you'll be arrested or you'll "slip" out of a window. Think about that "nuance" and how lucky you are you live in a democracy, before you point fingers.

 

[kiwigraeme]

All these sanctions create a temporary suffering, but in the long term just will make Russia stronger and more independent. They will find a way out and their relationship with China will become stronger too. All the Western sanctions are, in the long run, a serious mistake.

So nuanced and reasoned - Let's address your reasons one by one.
DONE!

Maybe you are anti-trade -and believe in protectionism . Global Trade done right is a win for everyone - with proviso care taken for safety, environment , some fair-trade help etc

Do you even know how the DOW and Nasdaq even work - it's about future earnings and growth - that's your 401ks or whatever Americans call their pensions
China is now controlled because it needs western consumers - it needs to opium of economic progress to stop political unrest in the masses . If China was completely cut off - think how much worse human rights abuses in ethnic areas would be .
America needs a growing consumer base world wide .
Do not cloud it with self-sufficiency to weather storms .
USSR failed , because it failed economically - if could not sustain a military cold war with the west .
Too many resources used badly to keep up a façade - Gorbachev knew it was a dead end game .

Russia economy is pitiful for a country with so many resources = 11th in world . Outside of gas, oil, neon etc - and the rape that is caviar - name one product the west needs - you buy Finnish or British Vodka - not Russian - Smirnoff is British - you would think Russia could capitalise on it's heritage( was started by Russia immigrants - same as Russian businesses in USA ).
Lots of Russia companies depend on western companies . I flew Aeroflot London to Moscow in the 1990s - it was actually a Lufthansa flight - the next one to Ethiopia was definitely Russian .

All Northern Europeans love to travel - why not seeing more young Russians travelling - they are afraid to lose any gains they made. A German does not care - you can come back at 28 from 5 years of travelling , with no money - hey presto 3 months - all is fine.
Now if you were a Russian would you invest in a business - all your money - that was secondary or tertiary type - knowing it could all be gone - Yeah primary - simple growers , food makers - maybe not such an issue .

Maybe you haven't studied economics - but there are things called "feel good factors", Confidence etc . Russians won't have that - the older know how to hanker down- black market trading , barter .

I'm tired of posters throwing out silly sound bites - that seem vaguely plausible .
Lots of people have great products , ideas etc - does not mean they are remotely going to be successful
Capital , people, ability to get professional expertise , marketing, lawyers, access to markets, set up and planning - and confidence - plus luck, timing and other things ( whoops Hard work )
Yeah everyone wanted a Russia car - they will be taking the windscreen wipers off soon - to keep safe in their homes - eating cabbage , potatoes, bread , and beetroot

 

[Puiu]

All these sanctions create a temporary suffering, but in the long term just will make Russia stronger and more independent. They will find a way out and their relationship with China will become stronger too. All the Western sanctions are, in the long run, a serious mistake.

In the long run Russia is f-ed up royally if they are blocked from the international bank system. China won't do anything to save them and can't do it anyway.

 

[VaRmeNsI]

You have the freedom to do that, but in Russia if you disagree you'll be arrested or you'll "slip" out of a window. Think about that "nuance" and how lucky you are you live in a democracy, before you point fingers.

Zelensky has put opposition in prison and also shut down opposition tv networks, he's no saint either.

 

[Burty117]

China and India are the great winners. They will take the Russian market. Now they are speaking about using Chinese credit cards, for example. People move.

I'm not being rude specifically to Russia here but, Russia isn't worth a lot. Russia's GDP in 2020 was 1.4 trillion dollars. Lower than Italy (1.8 trillion) much lower than Germany's (3.8 trillion) and that's just two of the country's in Europe.

China's economy isn't strong at the moment, it's on the decline, it would be strange to specifically help Russia out from China's perspective considering they need the money and, well, Russia doesn't have a lot.

They have what is it, just over 100 billionaires? That control roughly 35% of the country's wealth? Yeah, that sure sounds stable for China...

This move to Chinese payment processors is out of necessity (gotta ask yourself why weren't they already Chinese in the first place if they're "great pals") And I think a little bit of history needs to be reminded.

China and Russia didn't get along until recently, in-fact, they've only gotten on since the USSR collapsed. The moves Putin is making and the threats he makes sound like he wants to go back in time, are you sure China really wants that?

 

[Mr Majestyk]

All this will actually make USA stronger in the short and long term, too, because now Russia/China will be further isolated from the west, economically. EU will depend on USA more. USA will begin selling LNG to EU. Russian economy being isolated from the world, weakening them. This is actually everything USA wished for, in the same pack.

Australia has enough natural gas to supply the entire planet for a100 years. We can supply EU as much LNG as they need for as long as they need.

And well said kiwigraeme.

Russia today serves no purpose to the world but to sow chaos. Putin a tiny little man annoyed his Soviet Empire collapsed. He would have much preferred to spend his country broke on military and watch his citizens suffer to continue their tyrannical empire. Hi recent speeches while clearly heartfelt have been so delusional and revisionists crap its cringeworthy. Yet again Russian people will suffer but Putin has shown he has nothing but contempt for them, like so many other Russian despots. Putin will not care one bit how the sanctions affects Russia, this scum has been stealing $20 billion a year and sending it offshore. He will never be affected. With his total control of information he can spin his lies for eternity. This is why Chump admires him so much, he has the total authority that he would dearly love himself. Chump would be exactly the same if he could get away with it.

 

[p51d007]

All these sanctions create a temporary suffering, but in the long term just will make Russia stronger and more independent. They will find a way out and their relationship with China will become stronger too. All the Western sanctions are, in the long run, a serious mistake.

China already has their hooks into Russia
https://www.thegatewaypundit.com/20...-new-mri-system-partnership-chinas-union-pay/

 

[Eldritch]

So many well made arguments but are we going to not state the obvious, Who in their right mind will give all their financial data directly to China? We all know how that will end....