Cuba Will Suspend Visa and Mastercard Card Transactions

Overview

• Cuba's central bank announced that it will stop accepting Visa and Mastercard payments because a foreign bank that processed those transactions restricted its work with Cuba following recent U.S. sanctions.
• The bank said the processor's decision makes it impossible for Cuba to receive revenues from sales and services paid with internationally recognized cards, pressing hotels, shops and restaurants that rely on card income.
• Cuban authorities trace the pullback to a U.S. executive order that broadened sanctions on entities tied to Cuba's military-run conglomerate, which led several foreign companies to scale back or end operations on the island.
• For now, Cuba plans to rely on cash, domestic prepaid cards and non-U.S. networks such as Mir and UnionPay, a shift that will complicate transactions for foreign visitors and increase informal cash use for local businesses.
• The suspension deepens pressure on an already fragile economy by cutting tourism revenue and remittance-related flows, and it could prompt more corporate exits and stricter payment barriers unless processors or policy changes restore links.