Robinhood Wallet and Fomo app allow users to purchase memecoins with credit cards, with transactions categorized as "digital media" to circumvent crypto rules and earn rewards points. JPMorgan Chase has filed a complaint with Visa.
The Block's investigation reveals that Robinhood Wallet and Fomo app allow users to purchase memecoins like dogwifhat (WIF) with credit cards (via Apple Pay or Google Pay) through products from crypto infrastructure company Crossmint. These transactions are categorized as "digital media" (MCC 5815), rather than the cryptocurrency transaction categories (MCC 6012 or 6051) mandated by credit card networks. This circumvents credit card network restrictions on crypto transactions and allows users to earn rewards points. Chase Bank believes this classification is incorrect and has filed a complaint with Visa regarding the matter. The New York Attorney General's office has also stated it is reviewing the issue.
Source:The Block · Source Link
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