Cash Pickup vs MLC Card vs Bank Deposit: Which Payout Should You Choose?

Sending money to Cuba isn't just about picking an app and hitting "send." The most crucial decision you have to make is how your family receives the money. Because of Cuba's complex dual-economy and rampant inflation, the payout method you choose drastically affects how much food and supplies your family can actually buy.

In 2026, there are three primary ways your family in Cuba can receive a remittance: USD/EUR Cash Delivery, MLC Card Deposit, and CUP Bank Deposit. Here is a breakdown of which you should choose.

1. USD or EUR Cash Delivery (The Gold Standard)

Physical, hard currency (commonly referred to as "divisa") is king in Cuba. Because of hyperinflation, the value of the local Cuban Peso (CUP) drops constantly. Holding physical US Dollars or Euros protects your family's purchasing power.

Pros:

• Highest Informal Exchange Rate: Your family can take physical USD and exchange it on the informal market (often tracked by El Toque) for CUP at rates much higher than the government's official rate.
• Purchasing Power: Many private businesses (MIPYMES) offer steep discounts if you pay in physical USD or EUR.
• Security: Cash under the mattress isn't subject to banking outages, ATM shortages, or government freezes.

Cons:

• Higher Transfer Fees: Agencies that deliver physical cash to a house in Havana or Santiago de Cuba often charge higher fees (typically 10-15%).
• Slower Delivery: Cash delivery can take anywhere from 24 hours to 5 days depending on the province.

2. MLC Card Deposit (Moneda Libremente Convertible)

MLC is a digital currency created by the Cuban government. It is pegged 1:1 to the US Dollar, but it only exists on debit cards issued by Banco Metropolitano, BANDEC, or BPA.

Pros:

• Fast and Cheap to Send: Services like Western Union and Fonmoney can send money to an MLC card almost instantly with very low upfront fees.
• Access to State Stores: Certain government stores (Tiendas MLC) only accept MLC cards. These stores sell appliances, electronics, and imported foods.

Cons:

• Trapped Money: Once the money is on the MLC card, it is practically impossible to withdraw it as physical USD. If you withdraw it at an ATM, the bank gives you CUP at the terrible official state rate.
• Limited Use: MLC is practically useless in the informal market or for buying fresh food at the agro-mercado.

3. CUP Bank Deposit (Cuban Pesos)

You can send USD and have it deposited directly into a family member's CUP bank account. The sending agency converts your dollars to pesos.

Pros:

• Convenient for Bills: Good if your family just needs a little bit of money to pay the electric bill or buy subsidized rations (la libreta).

Cons:

• The Worst Value: If you use official channels, your USD is converted to CUP at the state's official rate (e.g., 1 USD = 120 CUP), while the street rate might be 300+ CUP. You are losing more than half of your money's value instantly.
• Inflation Risk: If your family doesn't spend the CUP immediately, it loses value every single week due to inflation.

Which Should You Choose?

Choose Cash Delivery if you want your family to have the maximum purchasing power and flexibility. Even with higher transfer fees, the informal exchange rate more than makes up for it.

Choose MLC only if your family specifically needs to buy an appliance or goods from an MLC store.

Avoid CUP Deposits through official channels unless absolutely necessary, as it destroys the value of your remittance.

To find the cheapest way to send USD Cash or MLC right now, check out our Remittance Calculator to compare top agencies and their real-time rates.