Key Highlights
- Visa is directing payment processors to stop using merchant category code 5815 (digital media) for memecoin purchases and instead apply cryptocurrency-related classifications.
- JPMorgan Chase flagged at least one Visa transaction for incorrect coding, and the New York Attorney General’s Office is reviewing the issue.
- The reclassification does not prohibit card-based memecoin purchases but may affect how card rewards are applied to such transactions.
Visa Cracks Down on Memecoin Transaction Coding
Visa is moving to tighten how memecoin purchases are classified across its network after scrutiny revealed that some card transactions were being processed under a digital-media merchant category code typically reserved for goods such as movies and audiobooks. The change follows test purchases made through Robinhood Wallet and Fomo using Visa and Mastercard cards via Apple Pay and Google Pay, which were processed by Crossmint and received merchant category code 5815. That code covers digital goods, whereas cryptocurrency purchases traditionally fall under separate merchant codes that determine how card issuers handle transactions, including rewards eligibility and risk controls.
Issuer and Regulatory Scrutiny Prompts Action
The misclassification drew immediate pushback from major financial institutions and regulators. JPMorgan Chase challenged the coding of at least one Visa transaction, stating it carried the wrong merchant category code and confirming it had opened a case with Visa. Simultaneously, the New York Attorney General’s Office said it was reviewing the issue. In response, Visa has reportedly instructed payment processors, including Checkout.com, to cease using the digital-media category for memecoin purchases and has given them until next week to update their systems to reflect cryptocurrency-related classifications.
SEC Guidance Does Not Govern Card Network Rules
Crossmint had cited a 2025 U.S. Securities and Exchange Commission staff statement on memecoins in connection with the transactions. However, that guidance pertains to securities law classification and does not determine how card networks categorize transactions for processing, rewards, or compliance purposes. Visa’s directive addresses the payment-network layer specifically, ensuring that memecoin purchases are routed through the appropriate merchant codes used for other cryptocurrency transactions.
Why This Matters
The reclassification carries practical consequences for consumers and the broader crypto payments ecosystem. Merchant category codes influence whether a transaction qualifies for standard credit card rewards—such as cash back on digital media—or is excluded, as many issuers treat cryptocurrency purchases differently. By aligning memecoin coding with established cryptocurrency categories, Visa closes a loophole that could have allowed purchasers to earn rewards unintended for digital-asset acquisitions. The move also signals that card networks and issuers are actively monitoring the intersection of consumer payments and emerging token types, especially as wallets like Robinhood Wallet and apps like Fomo expand access to memecoins through familiar checkout rails like Apple Pay and Google Pay. Regulatory attention from the New York Attorney General underscores that compliance scrutiny extends beyond securities law into consumer-protection and payment-network integrity.
Frequently Asked Questions
Does Visa’s change ban buying memecoins with a credit or debit card?
No. Visa’s directive does not prohibit card-based memecoin purchases. It requires that such transactions be classified under cryptocurrency-related merchant category codes rather than the digital-media code (5815).
Will this affect credit card rewards on memecoin purchases?
Potentially, yes. Many card issuers exclude cryptocurrency-coded transactions from standard rewards programs. Shifting memecoin purchases to crypto merchant codes may cause them to lose eligibility for cash back, points, or miles that might have applied under the digital-media classification.
What role did the SEC’s 2025 memecoin statement play in this decision?
The SEC staff statement addresses whether certain memecoins qualify as securities under federal law. It does not govern payment-network merchant category codes. Visa’s action is independent and focused on transaction processing classification, not securities regulation.
