Visa Seeks to Close Meme Coin Credit Card Rewards Loophole
Visa is taking steps to close a loophole that allowed users to earn credit card rewards on meme coin purchases. The workaround, facilitated by Crossmint's crypto payments infrastructure, classified these transactions under the 'digital goods media' category—typically used for e-books and music—which enabled consumers to receive standard cashback or points. This practice came under scrutiny after investigations revealed that platforms like Robinhood Wallet and Fomo allowed such purchases via Apple Pay or Google Pay without requiring KYC verification. Chase flagged one Visa transaction as misclassified, prompting a case with the payment network over incorrect merchant category codes. The New York attorney general is also reviewing the issue. In response to pressure from industry participants like Chase, Visa has informed processors—including Checkout.com—that this classification will no longer be accepted for meme coin purchases and given them time to phase out the practice by next week. Crossmint defended its approach citing a 2025 SEC staff statement that likened certain meme coins to collectibles. However, Visa insists these transactions must now follow crypto-specific rules. The move signals stricter oversight of how crypto-related payments are categorized and processed.
Topics: Credit Cards Crossmint KYC Meme Coins Merchant Codes Visa