Visa closes loophole allowing credit card rewards on meme coin purchases

Visa has instructed payment processor Checkout.com to reclassify meme coin purchases, effectively ending a loophole that allowed users to earn credit card points and cash back by categorizing these transactions as digital media. Previously, infrastructure provider Crossmint utilized the merchant category code 5815, typically reserved for streaming services, to process crypto purchases. With the grace period ending next week, these transactions will be correctly labeled as cryptocurrency, disqualifying them from rewards programs. The move follows scrutiny from institutions like Chase and the New York Attorney General's office regarding the classification of digital assets.