Paying at checkout may fail: issues with Visa and Mastercard cards

Owners of Visa and Mastercard cards risk facing an unpleasant situation at the checkout: the terminal may reject the payment transaction. This was reported by Meri Valishvili, an associate professor at the Department of State and Municipal Finance at Plekhanov Russian University of Economics.

Visa and Mastercard are international payment systems based on bank cards of the same name. They are used in most countries worldwide. They left Russia in 2022. Transactions now go through the National Payment Card System (NPCS). Old cards can still be used, but they do not work outside the Russian Federation.

«This does not mean that the card cannot be used to pay for purchases; it partially retains its functionality, although some POS terminals may reject the transaction,» the expert noted.

The reason for possible rejections is that from January 1, 2025, the security certificates for these cards have expired. They are responsible for encrypting data during transactions. As a result of the operation, a special code is created. However, after the expiration date, it cannot be verified.

The expert also warned that prolonged use of such cards increases the risk of data theft. The longer a card is used, the higher the likelihood that its data will fall into the hands of fraudsters. At the same time, effective protection methods are becoming fewer, Valishvili clarified in a conversation with the Prime news agency.

As noted by Petr Shcherbachenko, an associate professor at the Financial University under the Government of Russia, bank cards should be replaced at least once every five years. This reduces the risk of malfunction and protects against fraudsters.

Visa and Mastercard are under threat of being blocked. The reason is that the Central Bank«s board of directors plans to be given the authority to set a maximum service life for bank cards. For reasons behind this restructuring and possible risks, read our material.