Visa Classifies Meme Coin Purchases as Virtual Assets, Limiting Card Rewards

Visa has directed payment processors to classify purchases of meme coins as virtual asset transactions instead of general digital goods, according to reports. This change means that point and cashback rewards typically applied when buying meme coins with credit cards may be restricted. The Block reported that Visa informed one payment processor that categorizing meme coin transactions as 'digital media' was inappropriate.

Crossmint previously offered the ability to buy meme coins via credit card through platforms like Pomelo and Robinhood Wallet, with some transactions qualifying for standard card rewards. Investigations found these transactions used merchant category code 5815, typically reserved for digital goods such as e-books and movies. The Block reported on September 19 that after Visa's grace period ends, meme coin transactions may be processed as virtual asset trades, limiting card rewards. Crossmint spokesperson stated the digital goods processing procedure remains unchanged and will update if guidelines change.