Visa has told payment industry participants that the merchant category code Crossmint used to process Meme coin purchases as "digital goods media" does not apply to those transactions. The card network has instructed payment processors, including Checkout.com, to stop using that code and has given affected firms a transition period expected to end next week. Previously, users of Robinhood Wallet and Fomo could buy Meme coins through Apple Pay or Google Pay with Visa and Mastercard credit cards. Those purchases were processed by Crossmint but labeled as digital media transactions such as e-books or movies, allowing them to avoid crypto transaction classification and qualify for standard credit card points or cash back. JPMorgan had earlier raised questions with Visa about how those transactions were being classified. Visa then determined that at least one transaction had been misclassified and should not have received card rewards. Going forward, Meme coin purchases will need to be processed as cryptocurrency transactions and will be subject to Visa’s related rules and restrictions.
Visa has told payment industry participants that the merchant category code Crossmint used to process Meme coin purchases as "digital goods media" does not apply to Meme coin buys.
Visa has instructed payment processors, including Checkout.com, to stop using that code. It also gave the relevant firms a transition period that is expected to end next week.
Previously, users of Robinhood Wallet and Fomo could buy Meme coins through Apple Pay or Google Pay with Visa and Mastercard credit cards. Those transactions were processed by Crossmint, but they were labeled as digital media purchases such as e-books and movies. That allowed them to avoid crypto transaction classification and receive standard credit card points or cash-back rewards.
JPMorgan had earlier raised the transaction classification issue with Visa. Visa later determined that at least one transaction had been incorrectly classified and should not have qualified for credit card rewards.
Under the updated approach, future Meme coin purchases will need to be processed as cryptocurrency transactions and will be subject to Visa’s applicable rules and restrictions.
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