Buying memecoins with credit cards on Robinhood Wallet and Fomo appears to sidestep card-network crypto rules

Robinhood Wallet and Fomo appear to be circumventing card-network restrictions on crypto purchases by recoding transactions as "digital media" instead of cryptocurrency. This classification allows users to buy memecoins with credit cards while still earning rewards points, a loophole that direct crypto purchases typically don't permit. The workaround suggests that merchant category codes - rather than hard technical barriers - are the primary enforcement mechanism for these policies.

The move has caught the attention of issuers like Chase and is likely to prompt broader regulatory review. If the practice becomes widespread, it could reshape how consumers access crypto assets and force payment networks to tighten their classification standards.

• Transaction recoding as "digital media" sidesteps card-network crypto bans while preserving rewards eligibility.
• Payment issuers are already investigating; regulatory scrutiny and stricter merchant classification enforcement may follow.
• The ease of credit-card memecoin access could significantly alter spending patterns in retail crypto markets.