Odaily Planet Daily reports that Visa is shutting down a checkout loophole supported by the crypto payment infrastructure company Crossmint. The loophole previously allowed transactions for purchasing meme coins with credit cards to be categorized under merchant category codes applicable to digital media such as e-books, movies, and music.
Visa has notified payment processors, including Checkout.com, that they will no longer accept this code for meme coin transactions and has provided processors with a grace period to cease such practices, expected to end next week. Afterward, meme coin purchases must be processed as cryptocurrency transactions and subject to Visa’s corresponding rules.
Chase disputed a Visa transaction that was not flagged as a cryptocurrency transaction, arguing that its merchant category code was incorrect and that it should not qualify for credit card rewards. The New York State Attorney General’s Office has also been made aware of and has reviewed the matter. (Decrypt)