Visa to close loophole allowing credit-card rewards on meme-coin purchases

  • Visa is closing a loophole that let meme-coin purchases earn credit-card rewards.
  • JPMorgan flagged the issue after at least one transaction was misclassified.
  • Crossmint purchases will be classified as cryptocurrency transactions under Visa rules.

Visa is closing a payment-processing loophole that allowed some meme-coin purchases made with credit cards to earn standard rewards, including points and cash back. The transactions, processed through crypto payments infrastructure firm Crossmint, were coded as digital media purchases such as e-books and movies rather than cryptocurrency transactions. JPMorgan flagged the discrepancy to Visa, which confirmed that at least one transaction had been misclassified. Going forward, Crossmint-processed meme-coin purchases will be treated as cryptocurrency transactions and subject to Visa's applicable rules and restrictions.

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