Visa is directing payment processors to stop classifying memecoin transactions under merchant category code 5815, a designation intended for digital goods and media. The change follows a report by The Block published September 1, 2026, and takes effect after a compliance deadline the following week. Once reclassified under crypto-specific transaction rules, memecoin purchases will no longer qualify for credit card rewards.
The loophole allowed users to earn points and cash back on memecoin purchases by exploiting a merchant category code mismatch. Crossmint, a platform facilitating secondary sales of memecoins classified as collectibles, integrated with Robinhood Wallet and an app called Fomo. When users bought memecoins through these services using a Visa credit card, transactions were labeled as digital goods purchases under MCC 5815, triggering standard rewards payouts.
The arrangement permitted up to $1,000 per day in memecoin purchases without Know Your Customer verification, with a total volume cap of $1 million. Chase flagged the coding anomaly to Visa after noticing transactions incorrectly categorized. Visa confirmed the misclassification and began working with processors, including Checkout.com, to mandate reclassification.
Why the classification mattered
Merchant category codes determine multiple aspects of card transactions, including interchange fees and reward eligibility. Crossmint's framing of memecoins as collectibles rather than traditional crypto assets created the premise for using MCC 5815, which historically covers items in an ambiguous space between physical goods and financial instruments.
Once the misclassification was documented publicly, Visa had limited options. Allowing the arrangement to continue would have established a precedent for routing crypto purchases through adjacent categories, undermining the purpose of crypto-specific transaction rules.
Impact for users and platforms
For memecoin buyers, the practical effect is straightforward: rewards cease when transactions are reclassified. The purchases continue under different terms. For Crossmint and its partner platforms, the change is more operationally significant, requiring reclassification of transaction routing before the deadline.
The compliance requirements surrounding memecoin purchases may become more stringent under crypto transaction rules. The previous $1,000 daily limit without identity verification may shift as Know Your Customer requirements apply, potentially introducing friction for new users who valued the low-barrier entry point.
