For thousands of Cuban families, remittances that arrive from the United States represent a crucial support for covering everyday expenses, buying food, and addressing other needs.
But sending money to the Island is not always simple: fees, exchange rates, banking restrictions, and the various methods of receiving funds can make a significant difference in the amount that the recipient ultimately benefits from.
In 2026, the rise in the value of the dollar in the informal Cuban market, the implementation of a U.S. tax on certain remittances, and changes in financial sanctions have introduced new factors that senders must consider.
For this reason, choosing the most convenient option is not just about looking for the lowest commission. It also matters how much money the family actually receives, in what currency or payment method, and when they will have access to it.
The Consumer Financial Protection Bureau (CFPB) states that providers covered by federal remittance regulations must inform, prior to payment, the applicable costs, the exchange rate used, and the amount expected to be delivered to the recipient, with certain exceptions and conditions.
What should you compare before sending money to Cuba?
The first mistake is to focus solely on the announced commission.
A provider may offer commission-free shipments and apply a less favorable exchange rate, so that the recipient ends up receiving less money.
To compare two services, it is advisable to request a quote with the same total budget and review five pieces of information:
- Total disbursement: how much the sender will pay, including applicable fees and taxes.
- Amount and method of delivery: how much the recipient will receive and whether it will be in cash dollars, Cuban pesos (CUP), or balance on a card.
- Exchange rate: how many Cuban pesos the operator delivers for each dollar when currency conversion occurs.
- Additional charges: possible discounts from intermediaries, receiving entities, or services required to use or withdraw the money.
- Availability: when the balance can be used and whether there is an effective possibility to withdraw cash.
The information provided before payment allows you to compare offers without immediately committing to a transaction. It is also advisable to keep the receipt, which should include the details of the transfer and the procedures for filing claims.
Dollars, Cuban pesos, and cards: why does the method of delivery matter?
Receiving 100 dollars in cash does not necessarily equate to receiving a balance of 100 units on a card or its conversion to Cuban pesos. Each option has different usage conditions.
Cash dollars can be used directly for certain transactions or exchanged for pesos.
The balances on cards, on the other hand, depend on the product rules, the establishments where they are accepted, and the options for cash withdrawals. Cuban pesos allow for payments in the national currency, but their equivalence to the dollar depends on the reference market used.
This Wednesday, October 28, the dollar reached 850 CUP in the Cuban informal market, a historical high.
On its part, the floating official exchange rate segment of the Central Bank of Cuba was set at 754 CUP per dollar.
The difference between both references is 96 pesos per dollar. This means that a conversion of 100 USD at 754 CUP per dollar results in 75,400 CUP, while at 850 CUP per dollar it would result in 85,000 CUP: a difference of 9,600 pesos.
However, these rates do not guarantee that a provider will offer exactly those values nor that the recipient can freely convert their money.
To make a proper comparison, it is essential to use the effective rate of each service and consider the access conditions to the funds.
Example: how much the family receives with the same budget
Let’s assume that a person has 110 dollars in total to send to Cuba. Two providers offer different terms. The following figures are hypothetical and are meant only to illustrate the calculation.
- Provider A: charges a commission of 10 USD and delivers 100 USD in cash to the recipient. The total disbursement is 110 USD.
- Provider B: charges a fee of 5 USD and converts the remaining 105 USD at a rate of 754 CUP per dollar. The recipient receives 79,170 CUP.
If an informal rate of 850 CUP per dollar is used as a reference, the 79,170 CUP from supplier B would be approximately equivalent to 93.14 USD. This equivalence is indicative and does not mean that the recipient can effectively exchange that amount for dollars.
In this example, supplier A delivers 100 USD in cash, while supplier B provides 79.170 CUP. Although the latter charges a lower commission, the methods of receipt are different, and their practical value depends on the actual possibilities of using or exchanging the money.
A lower commission does not guarantee that the family receives a greater equivalent value. To compare both options, prices, available merchants, and the conditions for accessing the funds must also be considered.
What is happening with the formal remittance channels to Cuba?
The indefinite suspension of Western Union's operations to Cuba from the United States, announced in February 2025, has reduced the known alternatives for making transfers through traditional channels.
Among the reception mechanisms linked to the Cuban financial system are the Clásica and Tropical cards, as well as remittance and recharge services associated with operators like Tocopay. However, the existence of these products does not mean that everyone can fund them from the United States. Availability depends on the country of origin, the intermediary, and the current conditions of each service.
Before making a payment, the sender must verify that the operator accepts transactions originating from the United States and that the recipient can receive and use the funds in Cuba.
It is also important to distinguish between receiving balance on a card and obtaining cash in dollars.
The possibility of withdrawing cash at CADECA facilities may depend on cash availability and the conditions established for each product. A successful top-up does not, by itself, guarantee an immediate withdrawal.
1% Tax on certain remittances from the U.S.
As of January 1, 2026, a federal tax of 1% on certain remittance transfers abroad is in effect in the United States.
According to the Internal Revenue Service (IRS), the tax is applied when the sender delivers cash, money orders, cashier's checks, or other similar physical instruments to the provider to finance the operation.
Transfers funded through bank accounts or U.S. cards are not subject to this tax under those conditions.
The provider in charge of the remittance must collect the tax when applicable.
For example, a transfer of 100 USD subject to tax generates a tax charge of 1 USD, in addition to any fees that the operator may charge.
The sender must verify how that amount appears in the breakdown before confirming the payment.
U.S. sanctions: What shipments are allowed?
Family remittances to Cuba continue to be authorized by the Office of Foreign Assets Control (OFAC), but they must comply with the conditions set forth in U.S. regulations, particularly in 31 C.F.R. § 515.570.
The regulations distinguish between family remittances and other categories of transfers, with specific requirements and exclusions. Among the latter are certain individuals legally classified as prohibited officials of the Cuban government or prohibited members of the Communist Party of Cuba, as well as other recipients excluded based on the type of remittance.
The status of being a member of the Communist Party, by itself, should not be confused with the specific regulatory category of prohibited member.
In addition, the modifications to U.S. sanctions that took effect on September 30, 2026, expanded restrictions on certain indirect financial transactions related to entities included in the Cuba Restricted List.
These restrictions, outlined in 31 C.F.R. § 515.209, have conditions and exceptions that must be examined for each transaction. Just because a family remittance is authorized does not mean that any intermediary or payment route can be used automatically.
For this reason, before sending money, it is advisable to verify both the authorization of the remittance and the involvement of intermediaries and receiving entities. The official OFAC sanctions page on Cuba gathers the applicable regulations and guidelines.
Sender's Rights: Cancellations and Claims
International transfers covered by U.S. federal consumer protection regulations come with specific rights.
According to the CFPB, the sender generally has 30 minutes after the payment to request a cancellation at no charge, as long as the money has not been withdrawn by the recipient or deposited into their account, and all other conditions of the regulation are met.
If there is an error, such as an incorrect amount or a transfer that does not arrive, the consumer generally has 180 days from the availability date communicated by the provider to report the issue. The operator usually has a maximum of 90 days to investigate it and must inform the consumer of the outcome.
Depending on the type of error and the circumstances, the sender may have the right to a refund or for the money to be resent. These protections are explained in the official CFPB guide on international money transfers.
Can you ask your bank if it is legal to send money to Cuba?
Yes. The frequently asked question 53 from OFAC, updated on October 26, 2026, clarifies that an informational inquiry does not equate to an instruction to execute a transfer.
For example, asking the bank if it is possible to send money to Cuba does not, by itself, require blocking funds or submitting a report for a rejected transaction. The situation changes when there is a specific payment instruction that involves a prohibited operation or funds subject to blocking.
For specific inquiries regarding sanctions compliance, OFAC has a helpline at 1-800-540-6322.
Before carrying out a transaction, it is also advisable to request a complete quote from the supplier and to keep the delivery terms and proof of payment.
Related videos:
Filed under: