Visa Shuts Down Memecoin Rewards Loophole After The Block Report
Visa is closing a loophole that allowed memecoin buyers to earn rewards on cryptocurrency purchases, which are typically excluded from rewards programs.
The mechanism involved Crossmint, a platform that facilitates secondary sales of memecoins classified as collectibles rather than securities, integrating with Robinhood Wallet and an app called Fomo. When users bought memecoins through these apps using a Visa credit card, the transaction hit the payment network labeled as a digital goods purchase under Merchant Category Code 5815.
The four-digit code made all the difference because crypto purchases are typically excluded from rewards programs under Visa's policies, but digital goods are not. The system saw a routine media or software purchase and handed out points and cash back as designed.
Chase was the first to flag the issue, raising concerns with Visa after noticing the coding anomaly. Visa confirmed that at least one transaction had been incorrectly categorized, then began working with processors, including Checkout.com, to mandate the reclassification. As of September 19, 2026, the directive stands: memecoins get crypto codes, not media codes.