The Block’s investigation found that users of the social trading app Fomo and Robinhood’s self-custody wallet, Robinhood Wallet, can now buy memecoins with credit cards through Apple Pay or Google Pay. No separate KYC check is needed. They can also collect standard card rewards, including points and cash back.
Classification Deviation
The Block tested a purchase of WIF. On both Visa and Mastercard, the transactions appeared under merchant category code MCC 5815, used for digital goods media. They did not use the crypto-asset codes MCC 6012 or 6051, which card-network rules require. Those codes usually carry a crypto flag and block card rewards. Crossmint’s Token Checkout product, built for crypto payments, supports the transactions.
Divergent Positions
Crossmint says the classification is correct. Its reasoning: joint guidance from the SEC and CFTC issued in March labels some memecoins, WIF included, as “digital collectibles.” But Chase Bank said the Visa transaction was not marked as a cryptocurrency purchase and that the classification was wrong. The bank has opened a case with Visa. The New York Attorney General’s Office said it is reviewing the matter, too. Yesha Yadav, a Vanderbilt Law School professor, and other payment experts say the SEC’s position and the card-network rules are “two completely different systems.” That gap exposes the mismatch between regulatory frameworks and payment infrastructure.