Visa Moves to Close Credit Card Reward Loophole for Meme Token Purchases

Visa is working to fix a loophole that allowed users to earn rewards when buying meme tokens with credit cards through Crossmint. According to Foresight News, the issue involved using merchant codes normally assigned to digital media, a category typically used for e-books, films, and music, which let cardholders receive standard credit card points or cash back. Crypto in America said letters it reviewed showed Visa told at least one industry participant that the category was not appropriate for meme token purchases and informed processors, including Checkout.com, that the coding would no longer be accepted. Payment processors have been given a grace period to phase out the practice, which is expected to end next week. After that, such transactions must be treated as crypto asset transactions and will be subject to Visa's related restrictions.