Robinhood Memecoin Transactions Spark Visa Review

Visa is reviewing transactions processed as 'digital media' through Crossmint's payment system on Robinhood Wallet, which allows users to buy memecoins using credit cards without a separate Know Your Customer (KYC) check. The transactions were flagged with the merchant category code (MCC) 5815, which covers online sales of books, films, and music.

Crossmint's CEO Se Yong Park stated that the experience of buying a memecoin is similar to purchasing everyday items like coffee through Apple Pay. However, this approach may be in conflict with Visa's rules, as crypto buys must use MCC 6012 or 6051 and carry a quasi-cash flag, which strips reward points.

Chase bank has taken issue with the transactions, claiming that the wrong code was used, resulting in the bank's rewards program awarding points for what should be considered cash-like spending. The case has been escalated to Visa.