Catenaa, Wednesday, September 23, 2026- Visa is moving to close a payment-processing route that allowed some credit card users to earn ordinary rewards when purchasing memecoins through Robinhood Wallet and Fomo.
The change concerns transactions powered by crypto payments company Crossmint that were processed under a merchant category intended for digital media rather than cryptocurrency.
Visa has told at least one industry participant that the classification is inappropriate for memecoin purchases, according to Crypto in America, which reviewed correspondence related to the matter.
Payment processors, including Checkout.com, have reportedly been given a grace period to change the practice.
That period is expected to end this week.
Memecoin purchases will still be permitted, but transactions will have to be processed under Visa rules governing cryptocurrency purchases.
That could prevent customers from earning normal credit card points or cash-back rewards because many issuers exclude cryptocurrency and other cash-like transactions from their rewards programs.
The issue emerged after a September 1 investigation by The Block tested Crossmint-powered purchases through Robinhood Wallet and social trading app Fomo.
The transactions were completed using Visa and Mastercard credit cards through Apple Pay or Google Pay.
The purchases were categorized under merchant category code 5815, which covers digital goods such as electronic books, films, music and digital artwork.
Visa’s merchant standards use separate classifications for purchases of cryptocurrency and other liquid digital assets.
The distinction matters because merchant codes are used by card issuers to determine transaction treatment, fees, risk controls and rewards eligibility.
JPMorgan Chase told The Block that one Visa transaction had been incorrectly categorized and should not have earned rewards.
The bank subsequently challenged the classification with Visa.
The New York attorney general’s office also said it was aware of the issue and reviewing it.
Crossmint has defended its treatment of eligible memecoins, pointing in part to a 2025 Securities and Exchange Commission staff statement that said some memecoins can resemble collectibles rather than securities.
However, securities classification and payment-network merchant coding are separate issues.
Visa’s rules determine how transactions are processed across its card network regardless of whether an asset is considered a security.
Crossmint told The Block after the latest report that its procedures for processing digital goods had not changed.
The Crossmint checkout remained available through Robinhood Wallet and Fomo following reports of Visa’s decision.
Mastercard has not publicly indicated whether it will make a similar change.
The dispute highlights a growing challenge for card networks as cryptocurrency products become integrated into familiar payment systems such as Apple Pay and Google Pay.
For users, the immediate effect is straightforward: buying a memecoin with a credit card may remain possible, but receiving ordinary card rewards for doing so is becoming much less likely.
