U.S. Bank Issues First Debit Cards for Use in Cuba

A U.S. bank announced Thursday it has begun offering its American clients debit cards they can use in Cuba for the first since the two Cold War foes moved to normalize relations nearly a year ago.

Florida-based Stonegate bank said its U.S. clients can use the Mastercard debit card at hotels, restaurants and other businesses on the communist-ruled island.

"This is the first step in relieving the burden of U.S. travelers carrying cash when traveling to Cuba," Stonegate president and CEO Dave Seleski said.

The United States has eased certain travel, trade and financial restrictions, including the use of credit cards, as part of the rapprochement begun last December by U.S. President Barack Obama and Cuba's Raul Castro.

The two countries restored diplomatic relations July 20, and two days later Stonegate became the first U.S. bank to open a correspondent account in Cuba enabling transactions between the two countries.

The bank, which is based in Pompano Beach, Florida, said its debit card holders will initially have to sign for purchases, but it expects to expand their use in ATMs on the island sometime next year.

Americans must still show they are traveling to Cuba for authorized purposes before using the debit cards, the bank noted.

Tourism is not one of the 12 categories of travel to Cuba authorized by the United States. 

Despite the easing of restrictions, a U.S. embargo on Cuba remains in place. Lifting it requires action by the Republican-controlled U.S. Congress.