Visa is closing loopholes in the Memecoin rewards program – a measure to regulate cryptocurrencies
Visa has notified payment industry participants that the digital goods and vehicles merchant catalog code, MCC 5815, is not suitable for purchasing memecoin and has instructed payment processors accordingly.
9/21/20264 min read
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The Block published an investigation on September 1st after conducting test purchases of the cryptocurrency WIF on Robinhood Wallet and Fomo. On both card networks, the purchases were classified under MCC 5815 and lacked the specific flags indicating the transaction involved a cryptocurrency asset.
Visa's manual states that direct cryptocurrency purchases must use one of two different types, MCC 6012 or 6051, and must have a flag identifying them as cryptocurrency. Mastercard requires MCC 6051 and a cryptocurrency transaction identifier. Neither appeared in the test transactions.
Chase told The Block that Visa's transaction was not flagged as a cryptocurrency purchase, that they believe the transaction was misclassified and should not be eligible for reward points, and that they have opened a case with Visa. Chase's Ultimate Rewards terms exclude cash-like transactions, including explicitly cryptocurrency and other digital or virtual currencies, from earning points. The New York Attorney General's office told The Block that they are aware of Crossmint's product and are investigating.
Crossmint's defense argument
Crossmint defended its coding approach by citing a 2025 SEC staff statement describing some memecoins as more like collectibles than securities. That argument lumped together two classification systems that answer different questions. The SEC staff statement refers to whether a memecoin is a security under federal securities law. The card network's transaction code refers to the type of goods the cardholder is purchasing, so issuers can apply the correct pricing, rewards, risk controls, and restrictions. Payment experts told The Block that SEC opinions typically don't determine how purchases are classified under the card network's rules.
A memecoin may not be a security under securities law but is still a cryptocurrency under Visa's rules, because the cryptocurrency category of the card network is determined by the nature of the asset, not by its securities status. The SEC's view that a memecoin resembles collectibles for securities purposes does not make it an e-book for payment purposes.
Why is the seller code more important than appearance?
The reward aspect is the most obvious consequence, but it's not the most important. Card networks and card issuers rely on merchant catalog codes as the primary signal to determine how to process transactions, and the entire framework for managing cryptocurrency purchases with credit cards depends on whether that code is correct.
Issuers use crypto codes and flags to decide whether to approve those purchases, as many choose to restrict cryptocurrency purchases to credit. They use them to determine pricing, as cash-like transactions may be treated differently than regular purchases depending on the issuer. They use them to exclude rewards, such as Chase's terms. And they use them for risk and compliance monitoring, where knowing that money is flowing into volatile digital assets shapes fraud, disputes, and anti-money laundering reviews.
A transaction tokenized as a digital medium bypasses all those controls at once. The issuer sees what looks like a movie purchase, approves it according to the terms of purchase, awards points, and monitors it as low-risk digital goods. The cardholder receives memecoins granted as credit without any of the hurdles the issuer's policy intended to impose.
That's why Chase passed a single transaction to Visa. This loophole not only caused issuers to lose rewards, but it also meant their cryptocurrency policies didn't apply to purchases made with cryptocurrency.
Assessment and Conclusion
This enforcement action coincides with some of the most aggressive cryptocurrency expansion moves any card network has ever made. Visa added pre-loading and stablecoin payments to Visa Direct via zerohash in August, supporting over 160 stablecoin-linked card programs and directly integrating stablecoin payments into its network.
These two positions are consistent, not contradictory. Visa's expansion into stablecoins is based on a compliance framework that relies on cryptocurrency transactions being clearly identified as cryptocurrency. A regulated stablecoin payment system cannot allow cryptocurrency purchases to be entered into the system as digital instruments, because accurate classification is fundamental to enabling issuers, regulators, and Visa itself to process such transaction flows appropriately.
For cardholders, this change means that memecoin purchases made through these apps may no longer earn points and cashback, and depending on the issuer's policy, some purchases may be rejected or charged as cash transactions if they contain the correct code. For Crossmint, this means that its business model, based on conventional buying and selling methods, will have to operate under cryptocurrency regulations, which is what Visa's guidelines have previously required.
Disclaimer: The content in this article is for informational, research, data analysis, and reference purposes only regarding the cryptocurrency market. All opinions, assessments, forecasts, or opinions reflect the author's perspective at the time of publication and do not constitute investment advice, solicitations for buying or selling, trading recommendations, advertising, marketing, or promotion of any financial products, services, or cryptocurrencies. Mentions of projects, tokens, protocols, exchanges, wallets, or cryptocurrency service providers (CASPs) are for research, analysis, or informational purposes only and should not be construed as endorsements, recommendations, or guarantees in any way. HCCVenture does not broker, advertise, market, promote, or connect users in Vietnam with any cryptocurrency services from CASPs. HCCVenture does not accept asset custody, investment mandates, manage assets, or execute transactions on behalf of clients. All investment decisions are made entirely through the reader's own research (DYOR), evaluation, and responsibility; HCCVenture is not liable for any losses or damages arising from the use of or reliance on the information presented in this article.
Compiled and analyzed by HCCVenture
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