roommates, credit card companies Visa and Mastercard have suspended their operations in Russia effective immediately. According to AP News, today, the companies made a move based on the country’s invasion of Ukraine. Reports state Mastercard issued cards by Russian banks will no longer be supported by its network. Also, any Mastercard issued outside the country will not work at Russian stores or ATMs.
In a statement, the company said, “We don’t take this decision lightly,” and explained that the outcome was discussions with customers, partners, and governments. Visa is also working with its clients and partners in Russia to halt transactions over the coming days. Visa Chairman and Chief Executive Officer Al Kelly said in a statement, “We are compelled to act following Russia’s unprovoked invasion of Ukraine and the unacceptable events that we have witnessed.”
The suspensions were announced within 16 minutes of each other, and they followed a private video call made earlier in the day between President Volodymyr Zelenskyy of Ukraine and US lawmakers. As the conversation occurred, California Representative Brad Sherman tweeted that President Zelenskyy “asked us to turn off MasterCard and Visa for Russia,” and he agreed.
Visa and Mastercard aren’t the only companies suspending operations. According to CNBC, PayPal has also followed suit after they received pressure from Ukraine’s minister of digital transformation, Mykhailo Fedorov. Dan Schulman, PayPal’s CEO, said in a letter addressed to the Ukrainian government, “Under the current circumstances, we are suspending PayPal services in Russia.” Mykhailo thanked PayPal in an additional tweet, writing, “So now it’s official: PayPal shuts down its services in Russia, citing Ukraine aggression. Thank you, @PayPal, for your support!”
In addition, a PayPal spokesperson stated the company would continue work to process customer withdraws for a period of time, ensuring that account balances are dispersed in line with applicable laws and regulations. Roommates, we will continue to keep you updated as more information becomes available!
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