Visa is requiring payment processors to stop coding memecoin transactions as digital media purchases, a practice that previously allowed cardholders to earn standard points or cash back. The network has instructed Checkout.com to apply standard cryptocurrency classification codes instead of merchant category code 5815, which is typically reserved for streaming content, movies, and audiobooks.

The change follows scrutiny of how certain memecoin sales were processed. Transactions routed through Crossmint’s Token Checkout product for the Fomo and Robinhood Wallet apps lacked the special indicators that normally flag crypto-related spending. As a result, those purchases qualified for ordinary rewards programs that card networks generally withhold from cryptocurrency transactions.

Grace Period and Reclassification Timeline

Affected processors have received a limited grace period that is expected to expire next week. Once it ends, memecoin purchases processed through the relevant channels must follow Visa’s existing rules for cryptocurrency payments. Those rules typically restrict rewards eligibility and apply additional compliance requirements.

The directive was issued directly to Checkout.com. Sales of memecoins via the Crossmint-powered checkout remained active on both Fomo and Robinhood Wallet at the time the instructions were reported, pending the end of the transition window.

How the Classification Worked

Merchant category code 5815 covers digital goods such as media downloads and streaming services. Crossmint applied this code to memecoin acquisitions, enabling users to complete purchases with Visa cards—including through Apple Pay and Google Pay—while receiving points or cash-back rewards available for everyday digital spending.

In some cases, the arrangement permitted daily spending of up to $1,000 without Know Your Customer checks and operated under an overall volume limit of $1 million. The absence of crypto-specific transaction flags meant the purchases appeared on card statements as ordinary digital media activity rather than digital asset transfers.

Chase raised concerns with Visa after identifying the coding pattern. Visa subsequently confirmed that at least one transaction had been incorrectly categorized and should not have generated rewards. The network then began coordinating with processors to enforce the reclassification.

Crossmint Response and Token Adjustments

Crossmint has stated that it remains in good standing with Visa, Mastercard, and its payment partners. A company spokesperson said its procedures for handling digital goods have not changed and that the firm will update those procedures if network guidance is revised.

The firm previously pointed to securities regulatory guidance describing certain memecoins as similar to collectibles. Payments specialists have noted that legal characterizations under securities rules do not automatically dictate merchant category assignments used by card networks.

Following questions about token eligibility, Crossmint removed GENIUS, the native token of Genius Terminal, and DEGEN from its Apple Pay checkout options. Those assets had been available through the same pipeline used for memecoin sales.

Mastercard Stance and Regulatory Context

Mastercard has not publicly indicated whether it will issue comparable instructions to its processors. The network has not responded to inquiries on the matter.

Separately, the office of New York Attorney General Letitia James has confirmed it is examining Crossmint’s product. Visa and Checkout.com have not issued public comments on the reclassification directive.

Once the grace period concludes, memecoin purchases completed with Visa cards through the affected channels will be treated as standard cryptocurrency transactions and subject to the network’s established restrictions on such activity.