Visa restricts memecoin reward loophole via Crossmint

Visa is moving to close a payment loophole that has allowed some users to earn credit card rewards, such as cashback and points, on memecoin purchases. The issue involves Crossmint-supported checkout processes where transactions were being classified under Merchant Category Code (MCC) 5815, a code typically reserved for digital media like streaming services, movies, and audiobooks.

By using this digital media classification, memecoin purchases through platforms like Fomo and Robinhood Wallet were not being flagged as cryptocurrency transactions. This allowed them to bypass the standard restrictions and reward exclusions usually applied to crypto-related spending.

Visa has reportedly instructed payment processors to stop using the digital media category for these transactions. Affected processors have been granted a grace period that is expected to end next week. Following this period, memecoin purchases must be processed as standard cryptocurrency transactions, subject to Visa’s existing regulations and reward policies. Crossmint has defended its previous classification approach, stating the company remains in good standing with major card networks.