The Cuban central bank has declared that Visa and Mastercard transactions will be suspended from 6 June due to the impact of heightened US sanctions.
The bank noted that a foreign partner responsible for processing these payments has scaled back its involvement following a 1 May executive order from United States, which significantly broadened trade restrictions against the nation, reports Reuters.
This measure prevents Cuba from receiving revenue through internationally recognised credit cards for the sale of various goods and services.
The move is viewed as a significant blow to the island’s economy and its tourism industry, which has already faced substantial decline.
These actions are part of a broader strategy by the administration of US President Donald Trump to exert pressure on Cuba’s Communist government.
Traditionally, credit card operations have been facilitated by a foreign bank in conjunction with Fincimex, S.A.
Fincimex operates as the financial division of GAESA, a military-led conglomerate that the United States has specifically targeted with sanctions.
Washington claims that GAESA secretly funnels earnings from major industries such as logistics, finance, remittances, and tourism to support the Cuban military and elite.
Havana has dismissed these accusations, stating that GAESA operates transparently to support the country’s economic and social infrastructure.
The US executive order has already led to a wider exit of international businesses, with several airlines, hotel groups, and shipping firms distancing themselves from sanctioned entities on the island.
At the time of reporting, neither Visa nor Mastercard had issued statements regarding the suspension.
