Chase Flags Memecoin Transactions as Digital Product Buys

Certain memecoin purchases made using credit cards on Fomo and Robinhood Wallet have been flagged as digital product buys, earning users points and cash back. However, Chase has objected to this classification, stating that these transactions should not be rewarded.

Tests conducted by The Block revealed that WIF purchases were processed under the category used for digital content shopping instead of crypto transactions. Users also received standard card rewards when paying via Apple Pay or Google Pay.

The tested transactions were recorded on Visa and Mastercard networks with the MCC 5815 code, which covers products such as books, movies, music, and digital images provided in electronic format. However, Visa and Mastercard rules mandate the use of different codes for direct crypto purchases.