Anmol Nagpal

Visa, Mastercard to stop B2B payments

The RBI has asked Visa and Mastercard to stop card-based B2B payments such as rents or money transfer to vendors routed through third party fintech firms, according to the sources.

Source: RBI

The central bank has not specified why they have placed these restrictions, the sources said.

Source: Shutterstock

The impact would only be on commercial payments routed through third parties and not on all corporate card payments, the sources added.

Source: shutterstock

A set of fintech firms operate in a category called 'business payment solution providers,' which facilitate payments to merchants that do not otherwise accept card payments in return for a fee.

Source: Freepik

Only a small set of payments, which were routed via fintech firms, will be impacted, said the sources.

Source: Pexels

The central bank has for now asked Visa and Mastercard to suspend such transactions, the sources said.

Source: Reuters Breakingviews

Regular payments made to businesses via corporate cards will not be impacted.

Source: ANI