Cuba Halts Visa and Mastercard Payments Amid U.S. Sanctions

Cuba's central bank announced that, starting 6 June, transactions using Visa and Mastercard will be blocked. The move follows a U.S. sanctions expansion that prompted the foreign processing partner to cease operations on the island.

The ban cuts off a key channel for foreign currency earnings, hurting hotels, restaurants, retailers and tour operators that relied on card payments from tourists. The tourism sector, already in crisis, faces further revenue loss as visitors from Europe, Canada and elsewhere must use cash or alternative cards such as Russia's Mir and China's UnionPay.

Foreign hotel chains have begun withdrawing or scaling back their Cuban operations, citing the heightened legal and financial risks tied to the sanctions on the military‑linked conglomerate GAESA. Cuban authorities describe the measure as economic pressure, while Washington says the sanctions target the country's military‑linked economy.