An inspection effort in Sancti Spíritus resulted in over 200 fines and the closure of at least five businesses due to violations primarily related to pricing, and to a lesser extent, electronic payment channels.
The state broadcaster Radio Sancti Spíritus reported that most penalties were due to pricing infractions, while a smaller number were linked to non-compliance with digital payment regulations.
Infractions discovered included refusal to accept online payments, charging different prices for the same product depending on whether customers paid in cash or electronically, selling expired goods, poor product quality, and outdated consumer information.
Authorities emphasized that charging a higher price for electronic payments is a violation.
Widespread Pricing Issues
Inspections also revealed dual pricing at fairs and sales points, leading to recommendations for closures. Several businesses were shut down for repeatedly committing these violations, according to Radio Sancti Spíritus.
Specifically, at least five locations were closed: two on Máximo Gómez Street, one near the Kilo 12 Computing Youth Club, an illegal bakery on the highway to Zaza del Medio, and another business at the intersection of Garaita and Céspedes.
Broad Inspection Efforts
The operation included establishments in main streets and commercial areas of the city. Municipal and provincial inspectors participated, alongside representatives from the National Office of Tax Administration (ONAT), Labor, and Domestic Trade.
This operation occurred amid challenges faced by the banking policy initiated in August 2023. The Central Bank of Cuba's Resolution 111/2023 set rules for transactions between economic entities, while the Ministry of Domestic Trade's Resolution 93/2023 mandated payment facilities via national gateways or point-of-sale terminals for businesses registered in the Central Commercial Registry.
Low Adoption of Digital Transactions
Official data show that only 3.77% of transactions in Cuba are digital. In Sancti Spíritus, fewer than 10% of small businesses and self-employed workers regularly accepted digital transfers, according to figures released in May.
Cuban authorities also reported more than 15,240 fines and 269 closures related to violations of electronic payment rules. Merchants cited the challenge of many suppliers not accepting transfers, forcing them to keep cash to stock their businesses.
In response, the Central Bank amended Resolution 111/2023 with Resolution 74/2026 in July, removing the fixed 5,000-peso cash payment limit between economic actors to encourage this payment method. Additionally, it reduced the commission for online payments from 1.5% to 0.8% to promote digital transactions.
Understanding Payment Regulations and Challenges in Sancti Spíritus
What led to the fines and closures in Sancti Spíritus?
The fines and closures were primarily due to pricing violations and non-compliance with electronic payment regulations, including refusal to accept online payments and charging different prices for cash versus electronic payments.
How did the authorities respond to these violations?
Authorities conducted extensive inspections, resulting in over 200 fines and the closure of several businesses. They emphasized that charging extra for electronic payments is illegal.
What are the challenges faced by businesses regarding digital payments?
Businesses face challenges as many suppliers do not accept digital transfers, forcing them to maintain cash reserves. Additionally, there is low adoption of digital payments among small businesses and self-employed workers.