Visa Inc and Mastercard Inc are currently under investigation by the Federal Trade Commission. The FTC is probing whether their security tokens limit debit-card routing for online payments.&nbsp;

Known as one of the two biggest card networks in the US, Visa and Mastercard allow people to route their payments.&nbsp;

The FTC has been keeping an eye on Visa and Mastercard for a few years, inquiring whether both prevent business owners from making payments through different debit card networks. The FTC has increased its focus on the matter.

<a href="https://www.wionews.com/world/global-economy-live-updates-japanese-yen-hits-a-fresh-32-year-low-against-dollar-526286">Also read | Global Economy LIVE updates | Nationwide strikes in Paris Tuesday amidst soaring inflation</a>

Earlier, a Justice Department investigation was conducted to know whether Visa Inc has illegally maintained a monopoly on the debit card market share. This was done because as per federal laws, the customers must be provided with a choice of at least&nbsp;two debit card networks for making payments, The Wall Street Journal reported.&nbsp;

This month, the Federal issued an updated rule to the banks, referring that each customer must be&nbsp;given&nbsp;at least two networks on all debit cards including online shopping or payments.

<a href="https://www.wionews.com/business-economy/credit-suisse-to-pay-495-millio-to-settle-case-concerning-2008-financial-crisis-526149">Also read |&nbsp;Credit Suisse to pay $495 million to settle case concerning 2008 financial crisis</a>

Whenever a customer links a debit card with a digital wallet, a random 16-digit number is generated, referred to as a "security token" as it makes the payment easy. The token is only understood by the network. For example, if using Visa, then only Visa will be able to make the payments easy. However, the card network can also scramble the token if the debit is handled by another network.&nbsp;

Using this practice, Visa and Mastercard continue to remain on top.

However, customers complain regarding the process believing that the payments can be cancelled if it's handled by a different network.&nbsp;

This is the reason, the FTC is inquiring whether the top card networks are restricting payments after the shopper enters&nbsp;their debit card information.&nbsp;

(With inputs from agencies) 
&nbsp;

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Visa Inc and Mastercard Inc are currently under investigation by the Federal Trade Commission. The FTC is probing whether their security tokens limit debit-card routing for online payments.

Visa Inc and Mastercard Inc are currently under investigation by the Federal Trade Commission. The FTC is probing whether their security tokens limit debit-card routing for online payments. Known as one of the two biggest card networks in the US, Visa and Mastercard allow people to route their payments. The FTC has been keeping an eye on Visa and Mastercard for a few years, inquiring whether both prevent business owners from making payments through different debit card networks. The FTC has increased its focus on the matter. Also read | Global Economy LIVE updates | Nationwide strikes in Paris Tuesday amidst soaring inflation Earlier, a Justice Department investigation was conducted to know whether Visa Inc has illegally maintained a monopoly on the debit card market share. This was done because as per federal laws, the customers must be provided with a choice of at least two debit card networks for making payments, The Wall Street Journal reported. This month, the Federal issued an updated rule to the banks, referring that each customer must be given at least two networks on all debit cards including online shopping or payments. Also read | Credit Suisse to pay $495 million to settle case concerning 2008 financial crisis Whenever a customer links a debit card with a digital wallet, a random 16-digit number is generated, referred to as a "security token" as it makes the payment easy. The token is only understood by the network. For example, if using Visa, then only Visa will be able to make the payments easy. However, the card network can also scramble the token if the debit is handled by another network. Using this practice, Visa and Mastercard continue to remain on top. However, customers complain regarding the process believing that the payments can be cancelled if it's handled by a different network. This is the reason, the FTC is inquiring whether the top card networks are restricting payments after the shopper enters their debit card information. (With inputs from agencies) WATCH WION LIVE HERE

Visa, Mastercard under FTC investigation over debit-card routing competition

Card payment giants Visa and Mastercard announced Saturday they will suspend operations in Russia, the latest major US firms to join the business freeze-out&nbsp;of Moscow over its invasion of Ukraine.

"Noting the unprecedented nature of the current conflict and the uncertain economic environment," Mastercard said it had "decided to suspend our network services in Russia."

Visa, for its part, said that "effective immediately" it would "work with its clients and partners within Russia to cease all Visa transactions over the coming days."

US President Joe Biden "welcomed the decision" during a phone call with his Ukrainian counterpart Volodymyr Zelensky in which the two discussed US, ally and private industry actions to deter Russia from aggression, according to a White House readout.

Also read |&nbsp;<a href="https://www.wionews.com/world/zelensky-holds-phone-call-with-joe-biden-pushes-for-more-us-support-to-ukraine-459443">Zelensky holds phone call with Joe Biden, pushes for more US support to Ukraine</a>

Major corporations across a range of industries have halted business in Russia since its invasion began on February 24, including everything from US-based tech firms such as Intel and Airbnb to French luxury giants LVMH, Hermes and Chanel.

Visa and Mastercard had already announced that they were complying with US and international sanctions imposed on Russia in the wake of its attack.

"Our colleagues, our customers and our partners have been affected in ways that most of us could not imagine," Mastercard said, stating that its cards issued by Russian banks would no longer be supported by the company's network.

Visa similarly said that cards issued in Russia would no longer work outside the country.

Both companies said cards issued abroad would no longer work in Russia.

&nbsp;Russian banks downplay effects&nbsp;

"We are compelled to act following Russia's unprovoked invasion of Ukraine, and the unacceptable events that we have witnessed," Visa CEO Al Kelly said.

Russia's major banks, including its largest lender Sberbank and the Russia Central Bank, downplayed the effects that the cards' suspensions would have on their clients.

"All Visa and Mastercard bank cards issued by Russian banks will continue to operate normally on Russian territory until their expiration date," the Russia Central Bank said.

Sberbank said in a statement on its official Telegram account that the cards "can be used for operations in the Russian territory -- to withdraw cash, make transfers using the card number, and for payment at offline as well as at online Russian stores."

Also read |&nbsp;<a href="https://www.wionews.com/world/ukrainian-president-volodymyr-zelensky-needs-fighter-jets-russian-oil-embargo-says-report-459441">Ukrainian President Volodymyr Zelensky needs fighter jets, Russian oil embargo, says report</a>

The cards would continue to work on Russian territory, it said, because all payments in Russia are made through a national system and do not depend on foreign systems.

However, the central bank warned that Russians traveling abroad should carry alternate means of payment.

Mastercard added that it would continue to provide pay and benefits to its nearly 200 employees in Russia.

Visa's and Mastercard's announcements came hours after PayPal also halted its services in Russia.

Ukrainian deputy prime minister Mykhailo Fedorov tweeted a letter early Saturday from PayPal CEO Dan Schulman officially announcing the stop.

Watch |&nbsp;Gravitas Plus | Ukraine War: Are we heading towards World War III

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-plus-ukraine-war-are-we-heading-towards-world-war-iii-459352/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"Under the current circumstances, we are suspending PayPal services in Russia," Schulman said in the letter.

He added that PayPal would continue to support its staff in the region and would focus on "enabling our customers and our global employee community to support" humanitarian efforts in Ukraine.

&nbsp;

Card payment giants Visa and Mastercard announced Saturday they will suspend operations in Russia, the latest major US firms to join the business freeze-out of Moscow over its invasion of Ukraine.

Card payment giants Visa and Mastercard announced Saturday they will suspend operations in Russia, the latest major US firms to join the business freeze-out of Moscow over its invasion of Ukraine. "Noting the unprecedented nature of the current conflict and the uncertain economic environment," Mastercard said it had "decided to suspend our network services in Russia." Visa, for its part, said that "effective immediately" it would "work with its clients and partners within Russia to cease all Visa transactions over the coming days." US President Joe Biden "welcomed the decision" during a phone call with his Ukrainian counterpart Volodymyr Zelensky in which the two discussed US, ally and private industry actions to deter Russia from aggression, according to a White House readout. Also read | Zelensky holds phone call with Joe Biden, pushes for more US support to Ukraine Major corporations across a range of industries have halted business in Russia since its invasion began on February 24, including everything from US-based tech firms such as Intel and Airbnb to French luxury giants LVMH, Hermes and Chanel. Visa and Mastercard had already announced that they were complying with US and international sanctions imposed on Russia in the wake of its attack. "Our colleagues, our customers and our partners have been affected in ways that most of us could not imagine," Mastercard said, stating that its cards issued by Russian banks would no longer be supported by the company's network. Visa similarly said that cards issued in Russia would no longer work outside the country. Both companies said cards issued abroad would no longer work in Russia. Russian banks downplay effects "We are compelled to act following Russia's unprovoked invasion of Ukraine, and the unacceptable events that we have witnessed," Visa CEO Al Kelly said. Russia's major banks, including its largest lender Sberbank and the Russia Central Bank, downplayed the effects that the cards' suspensions would have on their clients. "All Visa and Mastercard bank cards issued by Russian banks will continue to operate normally on Russian territory until their expiration date," the Russia Central Bank said. Sberbank said in a statement on its official Telegram account that the cards "can be used for operations in the Russian territory -- to withdraw cash, make transfers using the card number, and for payment at offline as well as at online Russian stores." Also read | Ukrainian President Volodymyr Zelensky needs fighter jets, Russian oil embargo, says report The cards would continue to work on Russian territory, it said, because all payments in Russia are made through a national system and do not depend on foreign systems. However, the central bank warned that Russians traveling abroad should carry alternate means of payment. Mastercard added that it would continue to provide pay and benefits to its nearly 200 employees in Russia. Visa's and Mastercard's announcements came hours after PayPal also halted its services in Russia. Ukrainian deputy prime minister Mykhailo Fedorov tweeted a letter early Saturday from PayPal CEO Dan Schulman officially announcing the stop. Watch | Gravitas Plus | Ukraine War: Are we heading towards World War III "Under the current circumstances, we are suspending PayPal services in Russia," Schulman said in the letter. He added that PayPal would continue to support its staff in the region and would focus on "enabling our customers and our global employee community to support" humanitarian efforts in Ukraine.

Russia Ukraine Crisis: Visa, Mastercard suspend operations in Russia

Amazon's visa credit card row is becoming bigger now. The online retail giant says it will stop accepting visa credit cards issued in the United Kingdom from 19 January next year amid high credit card transaction fees.

Amazon's visa credit card row becomes bigger

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Visa, Mastercard under FTC investigation over debit-card routing competition

Russia Ukraine Crisis: Visa, Mastercard suspend operations in Russia

Amazon's visa credit card row becomes bigger