Cuba loses Visa and Mastercard services under US sanctions

From 6 June, international card networks Visa and Mastercard will cease operating in Cuba for transactions linked to the state‑controlled enterprise Fincimex. The move follows the United States’ executive order of 1 May that imposes sanctions on entities and individuals doing business with Cuban government sectors, including finance and defense. Cuba’s central bank said the suspension is intended to avoid penalty exposure for a private foreign bank that had been processing such card transactions.

The shutdown blocks the island from receiving payments for goods and services via widely accepted foreign cards, compounding earlier U.S. measures such as the oil embargo and sanctions on the state conglomerate Gaesa, which accounts for roughly 40 % of Cuba’s GDP. The loss affects foreign‑owned hotels, mining firms and other businesses that rely on card payments, deepening the island’s financial isolation.

Cuban authorities warned that the decision will hinder the flow of income from external commerce, while critics argue it further pressures the Cuban populace amid an already strained economy.