Visa will close a loophole that allowed certain card purchases of memecoins to generate loyalty points. The network has asked its payment processors to stop using the affected merchant code starting next week. However, purchases will remain possible by card, but without the associated rewards.
In brief
- Some memecoin purchases were classified as digital goods and generated points.
- Chase reported the anomaly to Visa, while the New York prosecutor’s office is examining the file.
- Card purchases should continue, but without points or cashback.
A merchant code made it possible to circumvent the rules
The problem comes from a four-digit merchant code: 5815, normally used for digital books and films. According to correspondence seen by Crypto in America, Visa has asked its processors to no longer use it for memecoin purchases.
The investigation published on September 1 by The Block had revealed that certain dogwifhat (WIF) purchases could be treated as digital goods. Result: the transactions triggered rewards programs normally associated with this type of purchase.
The Block had notably tested the purchase of WIF via Apple Pay and Google Pay on Fomo and Robinhood Wallet, with a Visa or Mastercard from New York. Crossmint, which provides the infrastructure used for these transactions, was involved in the process.
However, Visa rules provide for other categories for direct purchases of cryptocurrencies, in particular codes 6012 and 6051, accompanied by a specific indicator. By using another classification, the transaction could therefore escape the usual treatment reserved for crypto.
Chase reports the problem to Visa
Chase was one of the first banks to spot the anomaly. The bank confirmed to The Block that a transaction was not identified as a crypto purchase and therefore should not have generated rewards.
Crossmint, for its part, defended its approach. The company considers certain affected tokens to be collectibles, notably relying on a 2025 SEC staff statement regarding certain memecoins.
“ Each product we support goes through a detailed review with the relevant partners, including transaction categorization », assured a spokesperson.
The tightening follows three days after the failure of the CLARITY Act in the Senate, which left banks empty-handed on stablecoins. On the maps, JPMorgan marks a narrower point, according to Crypto in America.
The case is also of interest to the New York authorities. Attorney General Letitia James’ office told The Block it is looking into the situation.
Memecoins will remain purchasable by card
Visa’s decision does not mean the end of memecoin purchases by credit card. Users will still be able to use this payment method, but transactions must now be correctly identified as cryptocurrency-related purchases.
For platforms like Fomo and the players who facilitate these payments, the disappearance of points could nevertheless reduce the interest of this experience among new users.
Crossmint indicated in April that it had registered 68,000 first buyers thanks to its Apple Pay button, while Fomo had raised $75 million in June for a valuation of $550 million.
For the moment, Visa is the only network to have announced a specific measure on this flaw. Mastercard has not announced a similar change. The continuation of the file will depend in particular on the examination carried out in New York.
Ultimately, bank cards will therefore continue to serve as a gateway to memecoins. What is disappearing is above all the possibility of transforming a speculative purchase into a few additional loyalty points.
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