Visa moves to close memecoin rewards loophole

• Visa is moving to restrict how memecoin purchases are processed on credit cards.
• The change could stop buyers from earning standard points or cash back on memecoin purchases.
• Visa’s grace period is expected to end next week, affecting processors such as Crossmint.

Visa has moved to restrict the use of a digital-media category for memecoin purchases.

The category has allowed users to buy memecoins with credit cards while earning ordinary card rewards.

“Crossmint maintains good standing with Visa, Mastercard, and all of our payment and card network partners,” a Crossmint spokesperson told The Block.

Crossmint has used merchant category code 5815 for some memecoin purchases through Fomo and Robinhood Wallet.

The code is normally used for digital media such as streaming films or audiobooks and does not identify crypto transactions.

Visa has given payment processors a grace period that is expected to end next week, after which purchases will face standard crypto transaction restrictions.

Crossmint has said its procedures have not changed, while Mastercard has not disclosed whether it will issue similar instructions.