Visa to Close Memecoin Rewards Loophole Following The Block Investigation

Visa has announced it will close a loophole in its rewards program that allowed users to earn cashback on memecoin purchases, following an investigation by The Block that revealed the practice, according to a statement released on September 19, 2026. The investigation found that some Visa cardholders were using their cards to purchase memecoins—highly volatile cryptocurrencies often based on internet jokes—and earning rewards points in the process, which Visa had not intended to allow under its terms. Visa's decision to close the loophole reflects the company's cautious approach to cryptocurrency-related transactions, balancing innovation with risk management. The MEME index rose 4.96% on the day, while Robinhood (HOOD) gained 9.1%, suggesting that investors view the memecoin market as resilient despite the regulatory scrutiny. Visa (V) shares dipped 0.62%. The investigation by The Block, a leading crypto news outlet, highlights the growing intersection of traditional finance and digital assets, and the challenges that payment processors face in adapting their policies to the fast-moving crypto landscape. For content creators, this is a story about the tension between consumer demand for crypto-related products and the risk management concerns of established financial institutions. Visa's decision could set a precedent for other payment processors, potentially limiting the ability of users to earn rewards on crypto purchases in the future.
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