US-based lender Stonegate Bank has joined forces with MasterCard to offer US-issued debit cards for use in Cuba.
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The Debit MasterCard can be used in any 10,000 hotels, restaurants and other card-accepting merchants across Cuba. Users of the new card will initially have to sign for all Debit MasterCard purchases.
In addition, prior to visiting Cuba, the bank’s cardholders will have to ensure that they are travelling under one of the 12 categories authorised by US regulations, such as religious and professional purposes.
The bank intends to eventually expand the use of the cards to ATMs in 2016.
MasterCard eliminated its network block on US-issued cards being used in Cuba in March 2015.
Since then, the decision on whether a bank’s cardholders will be allowed to use their cards on the island was left to the respective bank, according to federal rules.
Stonegate Bank president and CEO Dave Seleski said: "This is the first step in relieving the burden of US travellers carrying cash when travelling to Cuba and another step in normalizing commercial relations between the two countries.
"Hopefully more issuing banks will help this process by approving credit and debit cards as well."
