Visa moves to close loophole allowing cashback on meme coin purchases

Visa has informed payment processors, including Checkout.com, to stop using the 'digital goods media' merchant category code for meme coin transactions processed by Crossmint. Previously, users of Robinhood Wallet and Fomo could purchase meme coins via Apple Pay or Google Pay using credit cards, with transactions misclassified as digital media like e-books or movies to bypass crypto-specific restrictions and earn cashback. Following inquiries from JPMorgan Chase, Visa determined these transactions were misclassified and mandated that future meme coin purchases must be processed under crypto-specific rules.