Visa to Close Meme Coin Credit Card Rewards Loophole

Odaily: Visa is closing a checkout loophole supported by crypto payment infrastructure company Crossmint. The loophole previously allowed users purchasing Meme coins with credit cards to have transactions classified under a merchant category code intended for digital media such as e-books, movies, and music.

Visa has notified payment processors, including Checkout.com, that it will no longer accept that code for Meme coin transactions, giving processors a grace period to stop the practice, which is expected to end next week. Thereafter, Meme coin purchases must be processed as cryptocurrency transactions and are subject to Visa's corresponding rules.

Chase had disputed a Visa transaction that was not flagged as a cryptocurrency transaction, arguing that its merchant category code was incorrect and that it should not have earned credit card rewards. The New York State Attorney General's Office is also aware of and reviewing the matter. (Decrypt)