Robinhood Wallet and Fomo let users buy meme coins with credit cards through Apple Pay and Google Pay without completing identity verification, according to an investigation by The Block. Test purchases using Visa and Mastercard were reportedly coded as "Digital Goods Media" under merchant category code 5815, rather than crypto-related codes 6012 or 6051.
The transactions were supported by Crossmint, and users were able to earn card rewards or cashback on the purchases. Chase said one Visa transaction was not flagged as a cryptocurrency purchase, believes the merchant category code was used incorrectly, and has referred the matter to Visa for review. The New York Attorney General's office is reviewing the issue, while Crossmint said the classification is reasonable because meme coins can be treated as "digital collectibles."
Robinhood Wallet, Fomo Meme Coin Card Purchases Face Rules Scrutiny
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