HAVANA: Cuba will suspend all Visa and Mastercard transactions starting June 6 after new United States sanctions forced a key foreign payment processor to halt operations, the country’s central bank said on Wednesday.
In a statement, the Central Bank of Cuba said a foreign partner that previously handled international card payments for the island had decided to limit its activities following a US executive order issued on May 1.
“As a result of this decision, Cuba is unable to receive income from the sale of goods and services through internationally recognised cards such as Visa and Mastercard,” the central bank said.
The suspension marks another setback for Cuba’s fragile economy and its already struggling tourism sector, which has been hit hard by tighter US restrictions and declining foreign arrivals.
Credit card transactions in Cuba have historically been processed through a foreign bank in partnership with Fincimex S.A., a financial services company linked to GAESA, a military-run conglomerate that controls large segments of the island’s economy.
The United States has accused GAESA of diverting profits from key industries, including tourism, remittances, financial services and logistics, to benefit the military and political elite. Havana has repeatedly rejected the allegations, saying GAESA plays a transparent role in supporting national development and public services.
The latest restrictions stem from a sweeping executive order signed by Donald Trump, which significantly broadened sanctions on trade and commercial engagement with Cuba.
The order has prompted several foreign companies to scale back or completely sever ties with Cuban entities targeted by US measures.
In recent weeks, multiple international hotel operators, airlines and global shipping firms have either suspended operations or announced plans to exit the Cuban market, according to industry sources.
Cuban officials warn that the loss of international card payments could further discourage tourism at a time when visitors are already facing limited banking options and cash shortages on the island.
Neither Visa nor Mastercard immediately responded to requests for comment on the suspension.
Economists say the move will likely increase Cuba’s reliance on cash transactions and alternative payment systems, further complicating daily commerce for both residents and foreign visitors amid one of the country’s most severe economic crises in decades.
