Payment processors have been expecting the changes for months, brokers forced out of credit cards. As expected, card payments are becoming more and more difficult for some brokers. Those who are operating from unregulated or loosely regulated environments will need to find alternatives.
Sources with intimate knowledge of the matter confirmed to Finance Magnates that card providers MasterCard and VISA are proceeding with their actions against forex, binary, cryptos and ICOs.
Back in April Finance Magnates reported that MasterCard is the first company to classify the industry as high risk. The move effectively meant that chargebacks could be executed up to 540 days after the date of the transaction.
As we suspected at the time, VISA came up with a similar announcement to MasterCard. The company has sent out a letter to payment processors that starting from December, transactions to forex, binary, crypto brokers and ICOs are becoming high risk.
Firms which are operating from loosely regulated jurisdictions are the primary target of the move. Some brokers and exchanges have already informed their clients that they will no longer be accepting credit card deposits.
MasterCard is implementing its changes starting from next Monday, while VISA will take its time until December. Payment processors are suspending their relationships with some clients until they find a viable solution.