Cuba's central bank said on Wednesday that it will suspend transactions made via Visa and Mastercard beginning June 6, attributing the disruption to U.S. sanctions that have led a range of foreign companies to sever commercial ties with the island.
The bank said a foreign partner that previously processed credit card transactions for Cuba has decided to curtail its operations after a U.S. executive order issued on May 1 significantly broadened sanctions on trade with Cuba. The central bank added that, because of that decision, "Cuba is unable to receive income from the sale of goods and services through internationally recognized cards such as VISA and MASTERCARD."
The policy change compounds what the central bank described as a growing economic strain linked to recent U.S. measures. The statement framed the curtailment as an immediate constraint on Cuba's ability to collect payments routed through international card networks.
Historically, credit card processing for Cuba has been managed by a combination of a foreign bank and Fincimex, S.A., which is identified as the financial arm of GAESA, a conglomerate run by the military. GAESA has been a focal point of U.S. sanctions actions, with the U.S. government accusing it of diverting profits from sectors including tourism, remittances, financial transactions and logistics to benefit the military and a privileged Cuban elite. The Cuban government rejects those accusations and says GAESA has contributed openly to the country's economic and social development.
The May 1 executive order has, according to the central bank's account, prompted a recent exodus of foreign firms from the Cuban market. In the days following the order, multiple foreign hotel operators, airlines and global shipping companies have reportedly scaled back or ended activities on the island as investors and service providers distance themselves from institutions targeted by the U.S.
Neither Visa nor Mastercard immediately responded to requests for comment on the planned suspension of card acceptance in Cuba.
Implications for payments and tourism
For an economy where tourism revenue and international transactions represent key streams of foreign currency, the loss of internationally processed card payments poses an immediate challenge to receipts from goods and services purchased by visitors and residents transacting across borders. The central bank's statement indicates a clear operational channel - the foreign processor - through which sanctions have disrupted payment flows.
What remains uncertain
The central bank's notice identifies the operational restriction and links it to the May 1 executive order, but it does not specify the identity of the foreign processor or outline any contingency mechanisms for affected merchants and consumers. How long the suspension will last, and what interim payment arrangements might be implemented, were not detailed in the statement.