Cuba suspends Visa & Mastercard payments over U.S. sanctions

Cuba will suspend Visa and Mastercard payments beginning June 6, according to an announcement from the country's central bank on Wednesday (June 3).

The bank said the move is a consequence of U.S. sanctions, which have recently prompted numerous foreign companies, including several hoteliers, to cut business ties with the island nation.

As reported by Reuters, the central bank explained that a foreign company responsible for handling Cuba's credit card transactions has chosen to scale back its services after a May 1 U.S. executive order significantly expanded restrictions on commercial dealings with Cuba.

"As a result of this decision, Cuba is unable to receive income from the sale of goods and services through internationally recognized cards such as VISA and MASTERCARD," the central bank said in a statement.

READ MORE: Meliá exits Cuba over economic & geopolitical strains

Visa nor Mastercard have not yet commented on the situation.

Another setback

The measure delivers another setback to Cuba’s struggling economy and battered tourism sector as the Trump administration intensifies sanctions aimed at increasing pressure on the island’s Communist government.

Historically, credit card payments in Cuba have been processed through a partnership between an international bank and Fincimex, S.A., a financial services company affiliated with GAESA, a military-controlled conglomerate that has been a focus of sanctions imposed during President Trump's administration.

U.S. officials contend that GAESA channels revenue from some of Cuba’s most profitable sectors – including tourism – for the benefit of the military and the country’s ruling elite.

Cuban authorities have rejected those allegations, maintaining that GAESA operates transparently and supports the nation’s economic growth and social programs.

READ MORE: Iberostar withdraws from managing 12 military-connected hotels in Cuba: report

In recent weeks, the executive order issued by Trump has led a number of foreign businesses – including hotel operators, airlines, and international shipping companies – to scale back or end their operations in Cuba as they seek to avoid entities subject to U.S. sanctions.

Companies were given until June 5 to cease dealings with the sanctioned entities or face potential penalties.

Hoteliers make an exit

Meliá Hotels International, Iberostar, Archipelago International and Blue Diamond Resorts are among the major hotel companies to restructure their operations in Cuba this week.  

As reported Wednesday, Meliá, one of the biggest international hotel operators in Cuba, maintaining a significant presence since 1990, will immediately end its management, marketing, and branding agreements for 15 hotels.

The 15 impacted hotels are:

• Gran Hotel Bristol Habana Vieja Member of The Meliá Collection
• INNSiDE Catedral Habana
• Meliá Buena Vista
• Meliá Cayo Santa María
• Meliá Jardines del Rey
• Meliá Las Dunas
• Meliá Península Varadero
• Paradisus Los Cayos
• Paradisus Princesa Mar
• Paradisus Río de Oro
• Paradisus Varadero
• Sol Caribe Beach
• Sol Cayo Santa María
• Sol Río de Luna y Mares
• Sol Varadero Beach

Iberostar has also ended its partnership with Gaviota, relinquishing management of 12 hotels.

The twelve hotels impacted hotels include:

• Iberostar Grand Packard
• Iberostar Selection Ensenachos
• Iberostar Selection Holguín
• Iberostar Coral Holguín
• Iberostar Selection Esmeralda
• Iberostar Coral Esmeralda
• Iberostar Coral Ensenachos
• Iberostar Selection La Habana
• Iberostar Origin Bella Vista Varadero
• Iberostar Origin Laguna Azul
• Iberostar Origin Playa Pilar
• Iberostar Origin Playa Alameda

It appears that Iberostar will, however, continue operating in Cuba through hotels partnered with other state tourism groups that are not affiliated with the military conglomerate, including Cubanacan and Gran Caribe, reports Cuban media outlet 14ymedio.

Another global chain to leave Cuba is Asia-based Archipelago International, which managed the Grand Aston Havana, Grand Aston Varadero, Grand Aston Cayo Paredon, Grand Aston Cayo Las Brujas and Aston Costa Verde.

As reported by Cuban news outlet 14ymedio, these properties may remain open, but will now be managed by Gaviota.

Canada’s Blue Diamond Resorts, a major foreign player in Cuba’s tourism industry for the past decade, will also terminate its operations on the island, as previously reported, 

The properties it managed will also now be administered by Gaviota, and the move will impact brands such as Blue Diamond Resorts Cuba, Blue Diamond Cuba, Royalton, Memories, Starfish, Mystique, and Resonance.

At least 11 airlines have suspended flights to Cuba in 2026 — including Air Canada, WestJet, Air Transat, LATAM Perú, Magnicharters, Air France, Iberia, Rossiya, Nordwind, and Turkish Airlines – with more than 1,700 flights cancelled in total.

The Government of Canada is currently warning citizens against all non-essential travel to Cuba, pointing to deepening shortages of fuel, electricity, food, water, and medicine.

Still, some tour operators, such as Enjoy Travel Group and Hola Sun Holidays, have continued to promote the destination. 

Hola Sun’s main connections to Cuba currently include flights via the United States (American Airlines, Southwest, and Delta Air Lines), Mexico City and Cancun (Aeroméxico, Viva Aerobus, and Magnicharter) and Panama (Copa Airlines).

Canada is Cuba’s largest tourism market. According to Cuban statistics, roughly 754,000 Canadians visited the island in 2025, representing a 12.4 per cent decrease from the previous year.

The downturn has intensified in 2026, with international arrivals dropping 55.8 per cent between January and April compared with the same period in 2025.

Ongoing power shortages, frequent blackouts, supply constraints, and reduced flight connectivity have prompted many hotel operators to either shut down properties or consolidate guests into a smaller number of hotels.

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