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      Visa to End Memecoin Rewards Loophole Following Report

      Visa is set to close a loophole that allowed users to earn credit card rewards on memecoin purchases, which the company explicitly prohibits. This decision follows a report by The Block published on September 1, 2026, highlighting that transactions for memecoins were misclassified under merchant category code 5815, typically reserved for digital goods and media. Visa has instructed payment processors to stop this classification, effective next week, after which memecoin purchases will be categorized under crypto-specific transaction rules that restrict rewards.

      The loophole was exploited through platforms like Crossmint, which facilitated secondary sales of memecoins classified as collectibles. When users made purchases using Visa credit cards via apps such as Robinhood Wallet and Fomo, these transactions were incorrectly labeled as digital goods purchases, allowing users to earn points and cash back. This misclassification was flagged by Chase, prompting Visa to take action to ensure compliance with its policies.

      The implications of this change are significant for both casual buyers and the platforms involved. While individual buyers will no longer receive rewards on memecoin transactions, the platforms will need to adapt to the new coding requirements. Additionally, the previous arrangement allowed users to spend up to $1,000 daily on memecoins without identity verification, a practice that may become more regulated under the new crypto transaction rules, potentially complicating access for new users.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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