Visa Moves to End Card Rewards Loophole for Memecoin Purchases
Visa is moving to stop certain memecoin purchases from being processed as ordinary digital-media transactions, a change that could end the ability of some users to earn standard credit card rewards when buying meme coins through Crossmint-powered checkouts.
The reported move follows an investigation into memecoin purchases made through Robinhood Wallet and Fomo, where some transactions were processed under a merchant category normally associated with digital goods rather than cryptocurrency.
Visa Moves to Change How Memecoin Purchases Are Classified
According to recent reporting, Visa has told payment processors that the digital-media merchant category should not be used for memecoin purchases. The change targets a payment-processing route that allowed certain crypto purchases to appear on card networks as digital media transactions.
The issue centers on merchant category code (MCC) 5815, a category generally associated with digital goods and media. Earlier testing reported by The Block found that some memecoin purchases were processed under this category instead of a cryptocurrency-related classification.
Because the transactions appeared as ordinary digital-media purchases, some cardholders received normal rewards such as points or cash back. Crypto purchases generally receive different treatment under card-network and issuer rules.
How Crossmint, Robinhood Wallet and Fomo Fit Into the Story
The reported transactions were powered by Crossmint, a crypto payments infrastructure company whose checkout technology enabled users to purchase certain memecoins with credit cards through platforms including Robinhood Wallet and Fomo.
The Block previously reported test purchases of the WIF memecoin using Visa and Mastercard cards connected through Apple Pay or Google Pay. Those transactions were reportedly classified as digital goods media and received ordinary card rewards.
The setup attracted attention because cryptocurrency purchases are normally subject to different processing and rewards rules than conventional digital goods.
Why the Card Rewards Matter
The main change for users could be the loss of ordinary credit card rewards on affected transactions.
When a purchase is processed under a digital-media category, the card issuer can treat it differently from a transaction identified as cryptocurrency. That distinction can affect whether points, miles or cash-back rewards are awarded.
If processors instead classify the purchases under the appropriate cryptocurrency categories, affected users may no longer receive the same rewards. The exact impact can also depend on the card issuer and its individual rewards policies.
Chase Questioned the Classification
The classification came under additional scrutiny after JPMorgan Chase challenged at least one Visa transaction.
Chase told The Block that the transaction appeared to have been assigned an incorrect category and should not have qualified for the associated rewards. The bank subsequently opened a case with Visa. The New York Attorney General's Office also said it was aware of the matter and was reviewing the issue.
The dispute highlights an important distinction: how a transaction is categorized by a card network is separate from the legal question of how a particular memecoin may be treated under securities or other financial regulations.
Crossmint Has Defended Its Approach
Crossmint has disputed the idea that its procedures were simply designed to bypass card-network rules. The company has pointed to its treatment of certain memecoins as digital collectibles and has argued that its digital-goods processing approach is consistent with its position.
However, card-network classification rules operate independently from securities-law interpretations. A token's regulatory status does not automatically determine which merchant category should be used for a card transaction.
Recent reporting also said Crossmint maintained that its procedures for processing digital goods had not changed.
What Happens to Memecoin Purchases Now?
The reported Visa change does not mean that users will suddenly be unable to buy memecoins with cards in every situation.
Instead, the immediate issue is how qualifying transactions are classified and processed. Visa has reportedly given payment processors a transition period to stop using the digital-media category for these purchases, with the period expected to end during the week beginning September 21.
Once the new classification is applied, affected purchases may lose ordinary card rewards and could also be subject to issuer-specific restrictions or fees. The exact result will depend on the payment processor, card issuer and transaction flow.
Why This Matters for Crypto Payments
The episode shows how merchant-category codes can have a significant effect on the user experience for crypto purchases.
For consumers, the difference between a transaction being recognized as digital media or cryptocurrency can affect rewards, fees and how the purchase is handled by the card issuer.
For crypto payment companies, the development also illustrates the importance of aligning checkout infrastructure with established card-network requirements as crypto becomes more integrated with mainstream payment systems.
Mastercard Has Not Announced a Matching Move
While the reported Visa action is focused on its payment network and processors, there has been no equivalent public announcement from Mastercard indicating that it will take the same step.
That distinction matters because earlier testing found that the Crossmint-powered checkout could also process memecoin purchases using Mastercard cards.
Whether Mastercard introduces a similar requirement remains separate from Visa's reported action.
What Crypto Users Should Watch Next
- Whether affected memecoin checkouts continue to accept credit cards after the transition period.
- Whether ordinary card points and cash-back rewards disappear from those transactions.
- Whether payment processors introduce different restrictions or fees.
- Whether Mastercard or other card networks issue similar guidance.
- How Robinhood Wallet, Fomo and Crossmint adjust their payment flows.
Key Facts
| Item | Reported Detail |
|---|---|
| Payment network | Visa |
| Affected asset type | Memecoins |
| Reported digital-media code |
MCC 5815 |
| Checkout infrastructure | Crossmint |
| Platforms involved | Robinhood Wallet and Fomo |
| Potential impact | Standard card rewards may no longer apply to affected purchases |
| Transition period | Reportedly expected to end during the week of September 21, 2026 |
Bottom Line
Visa is reportedly tightening the way certain memecoin purchases are classified, potentially ending a payment-processing route that allowed some buyers to receive ordinary credit card rewards on crypto purchases.
The change follows scrutiny of Crossmint-powered checkouts used through Robinhood Wallet and Fomo, including questions raised by Chase over the classification of at least one transaction.
For crypto users, the immediate issue is less about whether memecoins can be purchased and more about how those purchases are processed, classified and rewarded. As payment processors transition away from the digital-media classification, the availability of card rewards and other benefits could change.
Updated September 21, 2026, to reflect the latest reported developments. Visa's reported processor guidance and transition timeline are based on industry reporting; users should check their card issuer's terms for the treatment of cryptocurrency transactions.