Visa is moving to close a loophole that allows cashback on credit card purchases of meme coins.

BlockBeats news, September 19: Visa has informed payment industry participants that the "digital goods media" merchant category code used by Crossmint for processing meme coin transactions does not apply to meme coin purchases. Visa has notified payment processors, including Checkout.com, to stop using this category code and has given relevant institutions a transition period, expected to end next week.

Previously, Robinhood Wallet and Fomo users could purchase meme coins via Apple Pay or Google Pay using Visa and Mastercard credit cards, with related transactions processed through Crossmint, but they were tagged as digital media transactions such as e-books and movies, thereby bypassing cryptocurrency transaction classification and earning regular credit card points or cashback.

JPMorgan previously raised the issue of related transaction classification with Visa, and Visa subsequently determined that at least one transaction was misclassified and should not have received credit card rewards. In the future, meme coin purchases must be processed as cryptocurrency transactions and are subject to Visa's corresponding rules and restrictions.