Explained: What is the impact of Visa, Mastercard and American Express block in Russia?

With Visa, Mastercard and American Express having suspended their services in Russia, many questions rise: can one use the cards in Russia, is there an alternative, and what would be the impact of this ban?

Any cards issued by banks globally on these networks will not work in Russia at point-of-sale terminals or ATMs. (Photo: AP)

American card network operators Visa, Mastercard and American Express have suspended their services in Russia in light of the sanctions imposed on Moscow by the US owing the ongoing conflict in Ukraine. We take a look at the effects of this suspension.

🗞️ Subscribe Now: Get Express Premium to access the best Election reporting and analysis 🗞️

Can you use Visa or Mastercard in Russia?

The suspension means that any cards issued by banks globally on these networks will not work in Russia at point-of-sale terminals or ATMs. Further, cards issued by Russian banks on these networks will also stop working outside the country.

Story continues below this ad

Is there an alternative to Visa and Mastercard in Russia?

In the aftermath of similar US sanctions in 2014, where card networks like Visa and Mastercard had denied services to Russian banks, Moscow formalised its own payments system Mir, which was launched in 2015. Additionally, according to a Reuters report, Russia’s central bank said that many banks plan to issue cards using China’s UnionPay, a payments system it said was enabled in 180 countries.

What is the likely impact of the ban?

While Russian banks have downplayed the impact so far, suggesting that shoppers will be able to use cards issued by Visa or Mastercard till expiry, the networks have said that any cards issued abroad won’t work in Russia. Globally, barring China, Visa and Mastercard control nearly 90% of credit and debit card payments.

Newsletter | Click to get the day’s best explainers in your inbox

Police personnel seen to control the situation during a massive protest over the statehood demand and the inclusion of Ladakh under the Sixth Schedule, in Leh on Wednesday. (ANI Video Grab)

Statehood protest takes violent turn in Ladakh, BJP office set ablaze in Leh

India3 hr ago

Protests in Ladakh turned violent as students and youth organisations demanded statehood and Sixth Schedule status. Two elderly protesters fainted, prompting a shutdown call. A BJP office and security vehicle were set on fire. Activist Sonam Wangchuk urged for a peaceful approach. The demand for Sixth Schedule status is due to Ladakh's tribal-majority population and direct central administration.

View all shorts

More Explained

Explained As GST 2.0 kicks in: what changes for consumers and industry