Russia begins to refuse credit cards in worsening global financial crisis

[Slimprofits]

The Telegraph

By Charlotte Bailey

Last Updated: 9:15PM GMT 27 Oct 2008

Several Moscow city centre restaurants are now refusing to accept cards in a move not seen since Russia's last financial crisis almost a decade ago.

Some automated teller machines at Sberbank, the country's biggest state-owned bank, have also stopped accepting cards from other banks.

Several electronics and mobile phone stores said they no longer accepted credit card purchases.

Over the weekend, Aeroflot, the biggest Russian airline, announced it had stopped taking credit cards payments for flights except from a handful of banks.

[Belvegas]

Re: Russia begins to refuse credit cards in worsening global financial crisis

i've been living in japan for a few years and have often used my citibank card issued from canada.

but over the last 2 months it has been getting rejected whenever i try to use it here. i called citibank canada and they have assured me there are no issues with my card.

not sure why it is being rejected here in japan but have wondered if it's something to do with the current financial crisis. perhaps there's a japanese bank in the middle somewhere afraid of foreign cards?

[phirang]

Re: Russia begins to refuse credit cards in worsening global financial crisis

this is dollar liquidity, not solvency issue.

[c1ue]

Re: Russia begins to refuse credit cards in worsening global financial crisis

It may be a currency stability issue.

With regulations put in place limiting how much credit card companies can charge, there are significant potential downsides to having a floating foreign currency debt when currency rates are changing 5% and 10% on single days.

[WDCRob]

Re: Russia begins to refuse credit cards in worsening global financial crisis

Phirang, are you related to a chap named Tet by any chance?

[GRG55]

Re: Russia begins to refuse credit cards in worsening global financial crisis

this is dollar liquidity, not solvency issue.

So Citi is a solvent bank then? Seriously??? :p