Visa is preparing to tighten how meme coin purchases are categorized on its network, moving to prevent buyers from earning credit card rewards on speculative token buys that had been slipping through as everyday "digital media" transactions.
Closing the Rewards Gap
For some time, certain meme coin purchases have been processed under merchant category codes typically reserved for digital goods and media, allowing cardholders to rack up points, cashback, and other perks on transactions that resemble speculative investing more than ordinary spending. Visa's move aims to reclassify these purchases so they no longer qualify for standard rewards programs.
The change addresses a quiet loophole that let crypto buyers effectively subsidize their token purchases with card benefits, a practice that raised eyebrows among banks and payment networks wary of the risks tied to volatile digital assets.
The days of stacking credit card points on meme coin flips may be coming to an end.
A Narrower Win for Banks
The development follows a broader regulatory setback for financial institutions. Banks had lobbied for stricter oversight of stablecoins as part of the Clarity Act, but that legislative effort ultimately failed to deliver the tighter rules lenders were seeking.
Against that backdrop, JP Morgan is being credited with securing a more limited victory through Visa's reclassification effort. Rather than sweeping new stablecoin restrictions, the outcome is a targeted fix aimed squarely at how meme coin transactions are coded and rewarded.
The distinction matters for the industry, as merchant category codes determine not only rewards eligibility but also how transactions are treated for risk, fees, and compliance purposes.
- Meme coin buys had been coded as "digital media" transactions.
- The reclassification would strip away eligibility for standard card rewards.
- The change marks a narrower outcome after the broader Clarity Act push fell short.
For crypto enthusiasts who leaned on card perks to offset speculative purchases, the shift signals a more cautious stance from major payment players toward the riskier corners of the digital asset market.