Robinhood Memecoin Purchases Classified as Digital Media by Visa

Purchases of memecoins on Robinhood Wallet are being classified as digital media transactions rather than cryptocurrency by Visa and Mastercard, according to test purchases via Crossmint. This misclassification uses merchant category code (MCC) 5815, which is intended for books, films, and music sold online, instead of the required codes 6012 or 6051 for crypto transactions. Chase has stated that the incorrect code was used and is addressing the issue with Visa. Visa's regulations stipulate that crypto purchases must carry a quasi-cash flag, which typically disqualifies them from earning credit card rewards. Chase's rewards policy explicitly excludes cash-like spending, including cryptocurrency. Crossmint argues that its memecoins are collectibles, a stance supported by the SEC, which has likened meme coins to collectibles. New York Attorney General Letitia James is reviewing the situation, having previously taken action against Block for fraud controls and sued Coinbase and Gemini. The price of Dogwifhat (WIF) was approximately 0.19, down 2% in a day, with a total market cap of around 197 million. Additionally, a viral claim about a $20 million loss in Artificial Inu (AI) was found to be inaccurate, with real spending estimated at around 650000. Visa has the authority to recode transactions, issue warnings, impose fines, or reclaim fees, all of which could negate rewards.

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