Skip to comments.Visa, MasterCard Required to Pay $3.8Bln Security Deposit to Work in Russia
Posted on 04/28/2014 11:22:05 PM PDT by Freelance Warrior
The State Duma on Friday passed a law tightening requirements on embattled foreign payment systems Visa and MasterCard and giving them new competition in the form of a national payment system.
The law passed on Friday will require payment systems to ensure uninterrupted service, and obliges them to pay a security deposit to the Central Bank equivalent to the value of two days of transactions processed in Russia. Visa and MasterCard together will together be obliged to relinquish about $3.8 billion to the Central Bank.
Operators will also have to immediately inform the Central Bank about any stoppages of service and the reasons for them. Employees at companies that violate these regulations will be liable for fines ranging from 100,000 rubles to 1 million rubles ($2,800 to $28,000). The payment system companies themselves will face a penalty of 10 million rubles ($280,000) for every day of suspended service if they are large enough to be classified as nationally significant.
Visa and MasterCard are currently the dominant players on Russia's payment services market Visa processes about 60 percent of payments in a market that saw transactions worth $740 billion last year. MasterCard accounts for 35 percent of payments.
(Excerpt) Read more at sptimes.ru ...
Two days of VISA/Master Card transactions in Russia equal three billion? There’s some funny math here, or awful high traveling costs being charged.
That's not about the processing charge, but about the total 2-day transactions' turnover. From the article:
Visa and MasterCard together processed $1.9 billion per day last year.
Russia’s answer to US sanctions.
Hit the Obamunists where it hurts, their Wall Street fat cat backers.
Who will be screaming the loudest?
The Oligarchs supporting Putin in Russia?
Or the Oligarchs that bought and paid for the Democratic Party?
The banks will be screaming bloody murder over this. Just watch.
Visa processes about 60 percent of payments in a market that saw transactions worth $740 billion last year.
740 / 365.25 * 2 = 4.052 billion. The math is correct.
If you are wondering what this money pays for, I guess they are talking about the internal market, where a Russian citizen buys groceries with a Visa credit card. It's not just foreign travel; that would be just a million or two per day.
Russia does not plan on losing. I have a hard time feeling pity for the poor souls who helped elect the man that just cost them dearly. Dr. Frankenbank lost control of it’s monster.
And it’s just the beginning. The businesses that are going to take it in the wallet are going to be calling for impeachment soon as this gets rolling. And with luck, will start rolling on the Dems.
I think lots of personal scandals will soon find their way to well bribed reporters. And Barry’s ego won’t let him back down so under the bus they go.
Oh he might back down on this...but he will piss off another couple businesses when new sanctions take their place. And round and round we go until he runs out of pther businesses money.
The only question is will the powers that be stop him before either Russia nukes us or the bankers decide they have TRULY had enough.
“Russia does not plan on losing”
Who plans on losing? Other than moderate Congressional Republican leaders.
“The only question is will the powers that be stop him before either Russia nukes us or the bankers decide they have TRULY had enough.”
More likely Russian bankers pull on the Czar. As a percentage Russian big money/business will lose a lot more money.
More likely a greater percentage of our Nukes hit their target and actually explode. Russia is not launching any nukes at the USA.
I hope you are correct. But you have the weakest American Admin in history doing the tough guy routine with a former KGB billionre that has zero respect for him.
You have a purged miltary with that weak CIC at the controls. I would not bet the farm that we would launch if they did. not at all.No way Putin sits here and lets Obama financially wreck Russia or himself without a big pushback. Russia’s money men will either get their profit or get leader. Just lie here.
Well, probably. But since in Russia big businesses depend heavily on good relationships with the government, that's likely after their U.S. colleagues decide they've had enough. Besides, the big credits deals are mutually profitable - the London bankers also have what to loose.
Sorry... I goofed...
get a new leader. Not just lie there. and take it