MasterCard has instituted a ban on transactions to forex, binary, crypto brokers and ICOs transactions beginning on Monday, the 15th of October 2018.
- Visa’s ban will begin in December
- These transactions have been flagged as a high risk by the card operators
Those who use MasterCard and Visa for their forex, binary, cryptos and ICO transactions will soon have to find an alternative means as it has been confirmed that both companies are banning the use of their cards for such purposes.
The ban from MasterCard’s end will begin on Monday, the 15th of October while the ban for Visa will begin in December.
There has been speculation about this move for months as earlier this year, MasterCard formally classified the industry as a high risk one. As a precaution, chargebacks on transactions in the industry could be made for up to 540 days after the initial transaction was made.
Such a bold move made many in the industry suspect that a ban would be coming soon. It seems those suspicions were confirmed.
Visa formally sent out a letter to payment processors announcing that transactions to forex, binary, crypto brokers and ICOs will be considered high risk from December.
The primary target of the letters were firms that have taken advantage of loopholes and technicality to allow the depositing of funds through credit cards.
However, these loopholes cannot be used anymore and a number of brokers and exchanges have already made announcements and informed their clients of the new change.
A number of payment processors are, however, unsure of how to proceed and are holding off on work with their clients until an alternative presents itself.
Another method that can be used is ban wiring. However, that takes a considerable amount of time to complete.
When the use of MasterCards for depositing funds for transactions to forex, binary, crypto brokers and ICOs, there was no definite policy on whether or not they could be used.
As a result, many simply working with the assumption that they could until told not to. With MasterCard and Visa formally banning their use for transactions to forex, binary, crypto brokers and ICOs, other payment service providers might choose to follow suit.
MasterCard and Visa are two of the biggest giants in their field, and the impact of this is sure to be felt.
Another likely outcome is that payment service providers will offer services specifically for that purpose, and with the increase in Cryptocurrency debit cards, there is some hope on the horizon.