Cuba's central bank has suspended all Visa and Mastercard payment transactions on the island effective June 6, 2024 [1].

This move disrupts the primary financial infrastructure for international tourists and businesses, forcing a reliance on cash or alternative payment methods in a region popular with Canadian travelers.

The Banco Central de Cuba said the suspension follows a notification received on June 2, 2024 [2]. According to the central bank, an overseas financial institution that processes these card transactions for Cuba decided to sever its ties with the island [3].

Officials said the decision by the foreign bank was driven by U.S. sanctions. These sanctions have created a restrictive environment for international banks operating with Cuban entities, leading to a wider exodus of financial services from the country [3], [4].

The suspension affects tourist destinations across the island where these cards were previously accepted for hotels, excursions, and dining. Travelers who relied on digital payments now face significant hurdles in accessing funds and paying for services.

While the central bank announced the change on June 3, 2024 [1], the actual cutoff occurred shortly after. The loss of these payment networks further isolates the Cuban economy from the global financial system, complicating the logistics of tourism and trade.

“Cuba's central bank has suspended all Visa and Mastercard payment transactions on the island”

The suspension of Visa and Mastercard services illustrates the cascading effect of U.S. sanctions. By targeting the intermediary banks that facilitate global payments, the U.S. can effectively disable a country's digital economy without needing to sanction the payment networks themselves. For Cuba, this increases the economic burden on the tourism sector and pushes the country further toward non-Western financial alternatives.