Overview
- Payment processors have been told to stop using the digital-goods merchant category code (MCC 5815) for memecoin checkouts and must recode those sales under crypto-specific transaction codes.
- The move follows reporting that Crossmint-powered checkouts in apps such as Robinhood Wallet and Fomo routed memecoin buys as MCC 5815, which let cardholders earn ordinary points or cash back.
- JPMorgan Chase flagged at least one misclassified Visa transaction and opened a case with Visa after The Block's investigation prompted industry scrutiny.
- Processors were given a short grace period to implement the change, and once it expires affected memecoin purchases will generally no longer qualify for regular card rewards.
- The recoding may bring stricter KYC and compliance checks because the Crossmint setup had allowed up to $1,000 per user per day without identity verification and capped total volume at $1 million.