Visa is closing a credit card rewards loophole that allowed users to earn points and cash back on speculative memecoin purchases. Following an investigation by The Block, Visa directed payment processors like Checkout.com to stop classifying transactions powered by Crossmint under digital media code 5815. The loophole, flagged by Chase and reviewed by the New York Attorney General, allowed unverified purchases up to $1,000 daily on Robinhood Wallet and Fomo. Transactions must now be coded as crypto purchases.
Visa memecoin rewards closure
- ▪Visa has given payment processors, including Checkout.com, a grace period ending the week of September 21, 2026, to transition memecoin purchases to crypto-specific transaction rules
- ▪Visa is directing payment processors to stop classifying memecoin transactions under merchant category code 5815, which is reserved for digital goods and media
Merchant category code misclassification
- ▪An investigation by The Block published on September 1, 2026, revealed that memecoin purchases on Robinhood Wallet and Fomo apps, powered by Crossmint, were processed as digital goods media without cryptocurrency flags
- ▪The classification of memecoin purchases made through Crossmint-powered checkouts on Robinhood Wallet and Fomo under merchant category code 5815 allowed credit card users to earn ordinary rewards, points, or cash back that are typically prohibited on cryptocurrency purchases
Chase regulatory challenge
- ▪Chase flagged to Visa a Visa transaction it identified as misclassified under merchant category code 5815 for a memecoin purchase, and opened a case challenging the digital goods classification of memecoin purchases
- ▪The New York Attorney General's office, led by Letitia James, stated it was aware of and reviewing Crossmint's memecoin payment product
Crossmint collectibles classification rationale
- ▪Crossmint defended its use of merchant category code 5815 by citing a 2025 SEC staff statement that characterized certain memecoins as collectibles rather than securities
- ▪Crossmint disabled Apple Pay checkouts for the tokens GENIUS and DEGEN after inquiries from The Block regarding their classification as memecoins
- ▪Payments experts stated that SEC opinions do not typically determine how purchases are categorized under card-network classification rules
Buyer platform operational impact
- ▪While memecoin purchases remain functional on Robinhood Wallet and Fomo, buyers will no longer earn credit card rewards once transactions are reclassified under crypto codes
- ▪Robinhood Wallet and Fomo users could purchase memecoins with credit cards through Apple Pay or Google Pay up to $1,000 daily without completing a separate Know Your Customer verification
Debatable claims
- ▪Credit card networks should permit rewards on cryptocurrency purchases
- ▪Memecoins should be classified as digital collectibles rather than cryptocurrencies for payment processing
- ▪Low-value cryptocurrency purchases should be exempt from identity verification requirements
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