Visa Reclassifies Memecoin Transactions Amid Scrutiny

Visa has tightened its classification of memecoin purchases after scrutinizing transactions involving Robinhood Wallet and Fomo through Visa and Mastercard cards via Apple Pay or Google Pay. The change follows a challenge from JPMorgan Chase, which disputed the classification of at least one Visa transaction.

The New York Attorney General's Office is also reviewing the issue. Previously, test purchases made with Visa and Mastercard cards received merchant category code 5815, which covers digital goods such as movies and audiobooks.

Visa has now asked payment processors to stop using the digital-media category for memecoin purchases, aiming to reclassify these transactions correctly.