Visa is moving to stop payment processors from using a digital-media merchant category for credit-card purchases of memecoins, closing a route that had allowed some buyers to receive ordinary card rewards on transactions linked to cryptocurrency.
According to a Friday report by Crypto in America, Visa has told processors that merchant category code 5815 — generally associated with digital media such as streaming films, music, and audiobooks — is no longer suitable for memecoin purchases. The change affects checkout services powered by Crossmint, whose tools enable card-funded token purchases inside the Fomo app and Robinhood Wallet.
Crypto in America reported that Visa gave payment processors a grace period expected to expire next week. Once that period ends, processors would need to handle the purchases under Visa’s cryptocurrency-related rules rather than through the digital-media classification.
The decision places more scrutiny on a small but consequential part of crypto payments: the merchant code attached to a transaction. Merchant category codes, or MCCs, are standardized labels used by card networks and issuers to identify the type of business accepting payment. Those codes can determine whether a transaction earns rewards, triggers additional controls, or is restricted by a bank’s card policy.
Digital-media code drew scrutiny
The coding practice came under attention following a Sep. 1 Crypto in America investigation into Crossmint’s Token Checkout product. The company provides the payment infrastructure behind credit-card memecoin purchases embedded in Fomo and Robinhood Wallet, allowing users to buy certain tokens without first transferring funds to a crypto exchange.
The report said the transactions were being processed through MCC 5815 without the indicators normally used to identify purchases as crypto-related. That combination could affect how card issuers assess the transaction, including whether they permit it and whether they award points, miles, or cash-back benefits.
Checkout.com, the payment processor involved in the arrangement, was told directly that the digital-media code was no longer appropriate for memecoin purchases, according to the latest report. Memecoin checkout through Crossmint remained available in both Fomo and Robinhood Wallet when Crypto in America reviewed the services.
Visa has not publicly detailed the replacement classification that processors will use for the affected transactions. The practical effect, based on the report, is that purchases will move into the card network’s existing treatment of cryptocurrency transactions, which many banks subject to stricter controls than ordinary retail spending.
Cardholders may therefore see fewer successful credit-card transactions for memecoins, depending on their issuer’s policies. Many banks already limit or block card use for crypto purchases, while rewards programs often exclude cash-like or high-risk financial transactions from earning points. The outcome will vary by card and issuer rather than applying uniformly to every buyer.
Chase raised the issue with Visa
JPMorgan Chase had previously concluded that the digital-media coding was inappropriate and referred the matter to Visa, Crypto in America reported. The involvement of one of the largest U.S. card issuers illustrates why MCC classification can quickly become a network-level issue rather than a dispute limited to one payment processor or crypto application.
The office of New York Attorney General Letitia James also said it was aware of the product and reviewing it, according to the Sep. 1 report. No enforcement action or conclusion from that review was included in the supplied reporting.
Visa declined to comment on an earlier request about whether it would restrict use of the digital-media code for memecoin purchases. Mastercard has not disclosed whether it has issued comparable guidance to processors. Mastercard, Crossmint, and Checkout.com did not immediately respond to requests for comment in the latest report.
The move does not end Crossmint’s memecoin checkout offering, but it could make credit cards a less reliable funding option if issuers treat the transactions as cryptocurrency purchases. Debit cards, bank transfers, and other payment methods may remain available depending on the wallet, app, processor, and customer’s jurisdiction.
SEC framing did not settle card-network classification
Crossmint had previously defended the digital-media classification by pointing to U.S. Securities and Exchange Commission guidance suggesting that certain memecoins may be viewed as collectibles rather than securities in a securities-law context.
Payments specialists cited by Crypto in America said that reasoning does not generally decide which merchant category code applies to a transaction. Card-network classifications are designed for payment processing, risk management, and issuer controls; they do not necessarily track the legal analysis used by securities regulators.
That distinction became more complicated because some assets offered through Token Checkout appeared to extend beyond conventional memecoins. The Sep. 1 report identified Genius Terminal’s GENIUS token as an example. GENIUS was described as the native token of a non-custodial trading platform rather than a token clearly connected to an internet meme or cultural trend.
After questions were raised over classification, GENIUS and another token, DEGEN, became unavailable through Crossmint’s Apple Pay checkout, according to Crypto in America. The reporting did not establish whether their removal was directly tied to Visa’s instructions, the coding dispute, or a separate compliance decision.
Visa’s expected enforcement deadline would force processors to draw a clearer line between ordinary digital-content spending and transactions that result in the purchase of crypto assets. For apps seeking to make token purchases resemble familiar online checkout experiences, that line can affect approval rates, rewards eligibility, and the range of card issuers willing to support the service.
Concerned about tightening card rules for memecoins? Learn safer options in this guide to buying crypto via cards.
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