Visa Closes Meme Coin Loophole, Stops Rewards on Crypto Purchases
Visa has instructed payment processors to discontinue coding meme coin credit card transactions under the digital media category. This loophole allowed users to earn rewards on their purchases, but that will soon change.
A recent investigation found that customers could buy tokens with Visa and Mastercard credit cards through Crossmint checkouts on Fomo and Robinhood Wallet apps without any separate identity verification. The charges were classified under merchant category code 5815 for digital goods like e-books and streaming movies, but not marked as crypto.
Visa's own rules call for codes 6012 or 6051 plus a quasi-cash signal for crypto purchases. Chase bank contested one charge, disputing the classification and opening a case with Visa, while New York Attorney General Letitia James is reviewing the matter.