US Sanctions Interrupt Visa, Mastercard Payments in Cuba
- On Wednesday, Cuba's central bank announced that Visa and Mastercard transactions will cease June 6, citing United States sanctions that forced foreign partners to sever ties with the island.
- This suspension follows a May 1 executive order from President Donald Trump that broadened sanctions on commerce with Cuba, prompting an exodus of foreign airlines, hotel companies, and shipping firms.
- Transactions were historically processed by Fincimex, a financial arm of the military-run conglomerate GAESA, which the United States government has targeted for allegedly misappropriating profits from tourism and financial sectors.
- While the United States accuses GAESA of hoarding profits for the Cuban elite, Cuba denies these claims, asserting that the conglomerate contributes to the nation's economic and social development.
- This move represents another economic challenge for the struggling tourism sector as Trump ratchets up pressure in a stated bid to upend the island's Communist-run government.
45 Articles
45 Articles
Due to US sanctions, Visa and Mastercard credit cards in Cuba no longer work. Only cash and cards from Russia and China remain for foreign exchange payments in the country.
In a decision that responds to the recent escalation in the U.S. blockade, the foreign bank reported that it becomes "illicit and impossible" to continue implementing the agreements with Cuba.
Visa and Mastercard payments were suspended on the island.
Due to US sanctions, payments with the internationally recognized cards are no longer possible from Saturday.
"As a result of this decision, Cuba is unable to receive revenues from the sale of goods and services through internationally recognized cards such as Visa and MasterCard."
As of 6 June, the island will be more financially isolated by the blocking of the transactions of large payment firms.
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