Banking, finance, and taxes

Credit Card Giants Resume Russia Transaction Processing

Russia
Thinkstock
After announcing last Friday that they would not be processing any transactions for Russian banks, Visa Inc. (NYSE: V) and MasterCard Inc. (NYSE: MA) restarted payment processing on Saturday. Payment processing was halted following the inclusion of individuals who own banks on a list of 20 Russian officials and businesspeople who have been identified as targets of U.S. sanctions related to Russia’s annexation of Crimea.

SMP Bank, which is owned by Arkady and Boris Rotenberg, has had its payment processing resumed. A report in the Financial Times cites a statement from Visa:

Based on clarifications provided to Visa by the US government, Visa has determined that we are not required to block SMP Bank’s access to our network. As a result, Visa has reestablished network connectivity with SMP.

Payment processing was not lifted for Bank Rossiya, which was itself targeted by the sanctions. Visa also lifted processing restrictions on Investitsionny Soyuz and InvestKapitalBank, according to the Financial Times.

The Russian parliament is now considering a bill that would ban transaction services that are based outside of the country. If passed, that would prohibit either Visa or MasterCard from servicing payments in Russia. It is not clear how much impact that would have on either country.

Should Russia enact the legislation, it could have the unintended effect of isolating the country further from the international financial network. Politically that might be popular because ordinary Russians view the elite as raiding the country’s resources and moving them abroad, according to a report at USA Today, but such isolation could do more harm to the large Russian companies that play on the international stage.

Take Charge of Your Retirement: Find the Right Financial Advisor For You in Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding professional guidance—and we’ve made it easier than ever for you to connect with the right financial advisor for your unique needs.

Here’s how it works: 

1️ Answer a Few Simple Questions

Tell us a bit about your goals and preferences—it only takes a few minutes!

2️ Get Your Top Advisor Matches

This tool matches you with qualified advisors who specialize in helping people like you achieve financial success.

3️ Choose Your Best Fit

Review their profiles, schedule an introductory meeting, and select the advisor who feels right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.