Visa will end a loophole that allowed certain memecoin purchases by card to generate loyalty points. The network has asked its payment processors to stop using the concerned merchant code sta
Visa will end a loophole that allowed certain memecoin purchases by card to generate loyalty points. The network has asked its payment processors to stop using the concerned merchant code starting next week. Purchases will still be possible by card, but without the associated rewards.
The problem comes from a four-digit merchant code: 5815, normally used for digital books and movies. According to correspondence reviewed by Crypto in America, Visa asked its processors to no longer use it for memecoin purchases.
The investigation published on September 1 by The Block revealed that some dogwifhat (WIF) purchases could be processed as digital goods. The result: transactions triggered rewards programs normally associated with this type of purchase.
The Block notably tested buying 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’s rules have other categories for direct cryptocurrency purchases, including codes 6012 and 6051, accompanied by a specific indicator. By using a different classification, the transaction could bypass the usual treatment reserved for crypto.
Chase was one of the first banks to notice 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 defended its approach. The company considers some concerned tokens as collectibles, notably relying on a SEC staff statement from 2025 concerning certain memecoins.
” Every product we support goes through a detailed review with the relevant partners, including transaction categorization ,” a spokesperson assured.
The tightening follows three days after the CLARITY Act’s failure in the Senate, which left banks empty-handed on stablecoins. On cards, JPMorgan scores a closer point, according to Crypto in America.
The case also interests New York authorities. The office of Attorney General Letitia James told The Block that it was reviewing the situation.
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 properly identified as cryptocurrency-related purchases.
For platforms like Fomo and actors facilitating these payments, the disappearance of points could reduce this experience’s appeal to new users.
Crossmint said in April it had registered 68,000 first-time buyers thanks to its Apple Pay button, while Fomo raised $75 million in June for a valuation of $550 million.
For now, Visa is the only network to have announced a precise measure on this loophole. Mastercard has not announced a similar change. The case’s continuation will depend notably on the review conducted in New York.
Ultimately, credit cards will continue to serve as a gateway to memecoins. What disappears is mainly the possibility of turning a speculative purchase into a few extra loyalty points.
