Robinhood memecoin transactions labeled as digital media, Visa may intervene

Purchasing a memecoin via Robinhood Wallet is now categorized similarly to buying a film. Test transactions processed by Crossmint were recorded on Visa and Mastercard networks as digital media rather than cryptocurrency.

The merchant category code determines eligibility for credit card rewards. Chase has stated the incorrect code was applied and has escalated the matter to Visa.

Why the Robinhood Memecoin Code Matters

According to Visa's guidelines, cryptocurrency purchases must be assigned MCC 6012 or 6051 and bear a quasi-cash indicator, which eliminates most reward points.

This might be the most degen credit card feature ever created

Robinhood Wallet and Fomo now let you buy memecoins like directly with Visa, Mastercard or Apple Pay without a separate KYC check

Crossmint processes the transaction as "digital goods" instead of crypto, so you can… pic.twitter.com/THpxR9Nycm

— Jeremy (@Jeremybtc) September 2, 2026

Test purchases of dogwifhat (WIF) reportedly returned code 5815, which is used for online sales of books, movies, and music. Rewards points and cashback were issued normally.

Chase's rewards terms explicitly exclude cash-equivalent transactions and reference cryptocurrency. The bank asserted that the reward points should not have been awarded.

Crossmint responds by citing securities regulations rather than card network rules. Its support documentation restricts the service to memecoins it considers collectibles originating from internet culture. Stablecoins and payment tokens remain prohibited.

This legal stance has substantive support. In 2025, SEC staff categorized meme coins as collectibles. A March interpretive guidance specifically listed WIF alongside CryptoPunks. Visa's rulebook does not provide a similar exemption.

Reducing transactional friction is the core value proposition.

“Apple Pay is something that every iOS user uses in their everyday lives. The experience of buying a memecoin is no different from purchasing your morning coffee” said fomo CEO Se Yong Park.

The office of New York Attorney General Letitia James is examining the arrangement. Her team is familiar with payment infrastructure. In July, it secured $45 million from Block regarding Cash App fraud controls. In April, it filed lawsuits against Coinbase and Gemini concerning prediction markets.

WIF was trading at approximately $0.19 on Wednesday, a 2% daily decline, with a total market capitalization of roughly $197 million. The controversy had minimal impact on dogwifhat's price.

The $20 Million Loss That Was Not

A widely shared post alleged that a wallet accidentally sent $20 million into Artificial Inu (AI), losing $19.8 million instantly. The token is a meme coin on Robinhood Chain paired with tokenized NVDA.

HOLY FUCK

This wallet just fat fingered $20M into $AI.

His entry was $24B. His tokens are now worth $175K

Bro lost $19.8M in a second

Wallet: 0x67D698A325F29e17a9477F28Ba4FE50F1cec60E4

TX HASH: 0x26f67ef16462ecad21a147d2f0dd124a7da11b79b6525122aa1f51edb96b5603 pic.twitter.com/UsiRreCCkR

— LB (@lbexplorer) September 1, 2026

The reported amount originated from a price tracker rather than on-chain data. The tracker interpreted a single step in a multi-pool transaction as a completed trade. Traders who reconstructed the route estimated the actual expenditure at around $650,000, a figure BeInCrypto was unable to independently verify.

Robinhood's initiative involving tokenized equities and meme coins underlies both narratives. Convenient checkout led to the first, while low liquidity caused the second.

Visa has the authority to reclassify the merchant, issue a warning, impose fines, or reclaim fees. Any of these outcomes would eliminate the reward points.