Visa and MasterCard have stopped processing cardholders’ payments at four Russian banks targeted by financial sanctions from the United States.
Several banks reported that customer cards were being declined for payments and that they had received no advanced notification of the changes.
Go deeper with GlobalData
Sobinbank said that its call centres had been swamped by customers who were abroad and suddenly found their cards were not working.
Visa confirmed the freeze of cards issued by SMP Bank and Rossiya Bank – including Sobinbank and Investcapitalbank – for use on its payment network for online and retail purchases.
"In order to comply with the US law, Visa International Service Association is obliged to cancel access of those banks to Visa network," Visa said. MasterCard issued a similar statement.
However, customers can still withdraw cash from the bank’s ATMs.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"All other operations, including the issuance of deposits and making payments remain unaffected and without any restrictions," stated SMP Bank, adding that it has no assets in the US.
This is one of the Western sanctions taken against Russia over the ongoing situation in Ukraine.
Russian president Vladimir Putin warned earlier this month that sanctions against Russia threatened to cause mutual damage in the modern, integrated economy.
Related articles:
US Bank launches Visa Payment Controls
