Visa is taking steps to eliminate a loophole in payment processing that allowed meme coin purchases to be categorized as digital media transactions. This misclassification enabled users to earn standard credit card rewards, such as cash back or points, on crypto acquisitions.
The issue gained attention after Chase challenged a specific Visa transaction that was incorrectly coded. The bank argued that the purchase should not have qualified for rewards. Additionally, the New York Attorney General’s office has confirmed it is reviewing the situation.
Crossmint, the infrastructure provider behind these checkouts, previously utilized the digital goods merchant code, citing a 2025 SEC staff statement that categorized certain meme coins as collectibles. However, Visa has now informed processors like Checkout.com that this code is inappropriate for such assets.
Payment processors have been granted a grace period to update their systems, which is expected to conclude next week. Moving forward, all meme coin purchases made via Visa must be processed under official cryptocurrency merchant codes, subjecting them to standard industry rules.
