Visa to close loophole allowing credit card rewards on memecoin purchases

Visa plans to block a payment-processing loophole that had allowed cardholders to earn rewards on memecoin purchases made with credit cards, Crypto In America reported, citing sources familiar with the matter. The issue stemmed from memecoin purchases processed through crypto payments infrastructure firm Crossmint being classified under a merchant category code for digital goods and media, such as e-books, movies, and music, rather than as cryptocurrency transactions. As a result, some purchases qualified for standard credit card rewards including points and cashback. Visa told payment processors the category code was not appropriate for memecoin transactions, and said the purchases will instead be processed as crypto transactions subject to its crypto-related rules and restrictions. Payment processors were given a grace period to end the existing method, with the change expected to take effect as early as next week.