Visa is taking steps to restrict stablecoin infrastructure firm Crossmint from classifying memecoin purchases as "digital media." Some consumers had previously used credit cards to buy memecoins and still receive standard spending points or cash-back rewards. That arrangement is now facing changes.
Visa targets Crossmint's use of MCC 5815
An investigation by The Block said Crossmint and its payment processor, Checkout.com, had been assigning those transactions to merchant category code 5815. That code is commonly used for digital media purchases such as streaming video and audiobooks, and does not reflect the fact that the assets involved are cryptocurrencies. Under that classification, users were able to avoid the usual credit-card restrictions tied to crypto purchases and continue earning consumer rewards.
A Crossmint spokesperson told The Block that the company maintains good working relationships with Visa, Mastercard, and all of its payment partners. The spokesperson said Crossmint's position and process for handling digital goods have not changed, and added that if relevant policies are updated, its procedures will be updated as well.
Compliance concerns draw scrutiny
Crossmint had previously cited guidance from the U.S. Securities and Exchange Commission, arguing that some memecoins have characteristics similar to collectibles and that this supported the use of the code. Payments specialists, however, said legal views from regulators are not the same as the internal transaction-classification standards used by card networks.
Financial institutions including Chase have already determined that the classification was not appropriate. The office of New York Attorney General Letitia James has also launched an investigation into the related business.
Standard crypto rules expected after grace period
Visa is expected to enforce the rules more strictly once the grace period ends, requiring these transactions to follow standard crypto-asset processing procedures. In parallel, tokens including GENIUS and DEGEN have stopped supporting Apple Pay as a payment option.
So far, Mastercard has not publicly said whether it will make a similar change. Checkout.com and Visa declined to comment on the media report.