Banks Opposed Limits on the Validity Periods of Visa and MasterCard Cards

Russian banks have opposed an initiative to grant the Bank of Russia the authority to set and limit the validity periods of payment cards issued under international systems, including Visa and MasterCard. These proposals are being discussed as part of legislative measures aimed at combating fraud; however, market participants consider them excessive and potentially risky.

After international payment systems exited the Russian market, banks extended the validity of previously issued cards in order to avoid a mass replacement of plastic cards. These cards continue to operate within the country and are integrated into the national payment infrastructure. According to credit institutions, their continued circulation does not pose additional threats to the stability of the payment system.

The main objections raised by banks relate to potential economic and operational consequences. Limiting card validity periods could necessitate large-scale reissuance, requiring significant expenditures on card production, logistics, and IT system upgrades. In addition, mass card replacement may cause disruptions to recurring payments, subscriptions, and acquiring services, affecting both individual customers and businesses.

Banks also point out that regulating card validity periods effectively interferes with existing contractual relationships between financial institutions and their clients. At the same time, market participants note that such a measure does not provide a clear effect in terms of fraud prevention.

At the same time, market participants emphasize that Russia’s payment infrastructure is already evolving and becoming less dependent on traditional card-based transactions. Card-free payment methods are increasingly being used, primarily the Faster Payments System (FPS), as well as transfers by phone number and QR-code payments. These tools are applied both in retail payments and in settlements between businesses and customers, reducing the load on card infrastructure.

According to banks, the development of the FPS and other card-free solutions should proceed gradually, alongside the continued use of existing payment instruments, rather than as a result of strict administrative restrictions.

The market is already adapting to the new environment, and abrupt regulatory measures could make this process less manageable and more costly.

Discussions of the initiative are ongoing, and representatives of the banking community expect that final decisions will be made with due regard for the position of the market, as well as the interests of customers and businesses.